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Pollution-generating technologies and environmental efficiency


  • Rolf Färe
  • Shawna Grosskopf
  • Tommy Lundgren
  • Per-Olov Marklund
  • Wenchao Zhou


In this paper, we study environmental efficiency (EE) within a pollution-generating technology. Good output and bad output (pollution) are explicitly modeled by imposing technology properties of disposability and null-jointness. With data on firms from Swedish manufacturing, we investigate the potential to reduce emissions, and we take a closer look at the pulp and paper sector. Dividing the firms into 'brown' and 'green' firms, we find that there is significant potential, in both categories, to improve EE, and hence lower emissions, of three air pollutants (CO 2 , SO 2 , NO x ). Generally, the methods and results encourage similar and comparative studies on the manufacturing sector in other countries. If there is a comparable potential elsewhere, such as in major polluting countries like China, there is potential to promote a sustainable society by conducting effective energy and climate policies. We also suggest that treating biofuels as completely carbon neutral, as is common practice when constructing emission data in Sweden (Statistics Sweden), may lead to incorrect EE scores and consequently misleading policy implications.

Suggested Citation

  • Rolf Färe & Shawna Grosskopf & Tommy Lundgren & Per-Olov Marklund & Wenchao Zhou, 2014. "Pollution-generating technologies and environmental efficiency," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 12(3), pages 233-251, August.
  • Handle: RePEc:taf:jocebs:v:12:y:2014:i:3:p:233-251
    DOI: 10.1080/14765284.2014.931429

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    Cited by:

    1. Karimu, Amin & Brännlund, Runar & Lundgren, Tommy & Söderholm, Patrik, 2017. "Energy intensity and convergence in Swedish industry: A combined econometric and decomposition analysis," Energy Economics, Elsevier, vol. 62(C), pages 347-356.
    2. Brännlund, Runar & Lundgren, Tommy & Söderholm, Patrik, 2015. "Convergence of carbon dioxide performance across Swedish industrial sectors: An environmental index approach," Energy Economics, Elsevier, vol. 51(C), pages 227-235.

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