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Investment in Pollution Abatement and Productivity Change in Canadian Regional Pulp and Paper Industries

Author

Listed:
  • Hailu, Atakelty
  • Veeman, Terrence S.

Abstract

The performance of pulp and paper industries in four Canadian regions is compared based on the estimation of an input distance function both with and without pollutant outputs. The environmentally sensitive approach provides higher productivity growth estimates for all regions, indicating the need for adjusting conventional measures that ignore the non-marketed benefits of pollution abatement activities. The results also consistently indicate the presence of substantial differences in the regional levels of technical efficiency.

Suggested Citation

  • Hailu, Atakelty & Veeman, Terrence S., 2002. "Investment in Pollution Abatement and Productivity Change in Canadian Regional Pulp and Paper Industries," 2002 Conference (46th), February 13-15, 2002, Canberra 125097, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare02:125097
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    File URL: http://purl.umn.edu/125097
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    References listed on IDEAS

    as
    1. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
    2. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
    3. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-891, December.
    4. Coggins, Jay S. & Swinton, John R., 1996. "The Price of Pollution: A Dual Approach to Valuing SO2Allowances," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 58-72, January.
    5. Hailu, Atakelty & Veeman, Terrence S., 2000. "Environmentally Sensitive Productivity Analysis of the Canadian Pulp and Paper Industry, 1959-1994: An Input Distance Function Approach," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 251-274, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    productivity; technical change; efficiency; input distance functions; pulp and paper; undesirable outputs; BOD; TSS; pollution abatement; Environmental Economics and Policy; Productivity Analysis; D24; L73; O47; Q25;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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