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Greenhouse gas emissions and the productivity growth of electricity generators

Author

Listed:
  • Greg Murtough

    (Productivity Commission)

  • David Appels

    (Productivity Commission)

  • Anna Matysek

    (Productivity Commission)

  • CA Knox Lovell

Abstract

This paper analyses electricity generation in four Australian states and the Northern Territory in the late 1990s It finds that productivity growth estimates for electricity generators can change significantly when allowance is made for greenhouse gas emissions. Using an innovative analytical technique for incorporating environmental impacts in productivity estimates, it shows that productivity growth is overestimated when emission intensity is rising and underestimated when emission intensity is falling. This is because emissions are undesirable and so if they fall (grow) per unit of output then this will tend to increase (decrease) estimated productivity.

Suggested Citation

  • Greg Murtough & David Appels & Anna Matysek & CA Knox Lovell, 2002. "Greenhouse gas emissions and the productivity growth of electricity generators," Others 0201002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpot:0201002
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    References listed on IDEAS

    as
    1. Gian Carlo Scarsi, 1999. "Local Electricity Distribution in Italy: Comparative Efficiency Analysis and Methodological Cross-Checking," Working Papers 1999.16, Fondazione Eni Enrico Mattei.
    2. Yaisawarng, Suthathip & Klein, J Douglass, 1994. "The Effects of Sulfur Dioxide Controls on Productivity Change in the U.S. Electric Power Industry," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 447-460, August.
    3. Reig-Martinez, Ernest & Picazo-Tadeo, Andres & Hernandez-Sancho, Francesc, 2001. "The calculation of shadow prices for industrial wastes using distance functions: An analysis for Spanish ceramic pavements firms," International Journal of Production Economics, Elsevier, vol. 69(3), pages 277-285, February.
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    Cited by:

    1. E G Gomes & M P E Lins, 2008. "Modelling undesirable outputs with zero sum gains data envelopment analysis models," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(5), pages 616-623, May.
    2. Vernon Topp & Tony Kulys, 2014. "On Productivity: The Influence of Natural Resource Inputs," International Productivity Monitor, Centre for the Study of Living Standards, vol. 27, pages 64-78, Fall.
    3. Halkos, George & Petrou, Kleoniki Natalia, 2018. "A critical review of the main methods to treat undesirable outputs in DEA," MPRA Paper 90374, University Library of Munich, Germany.
    4. Halkos, George & Petrou, Kleoniki Natalia, 2019. "Treating undesirable outputs in DEA: A critical review," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 97-104.

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    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

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