Environmental Valuation & Cost-Benefit News
Environmental production functions and environmental directional distance functions
03/31/07
08:22:14 am, by damageva 
, 184 words, 336 views 
Categories: General, Air, Energy, U.S., Academic Study/Journal Article, Costs and Benefits
Environmental production functions and environmental directional distance functions
Abstract: This study derives the relationship between environmental production functions and environmental directional distance functions. These two approaches make different assumptions when modeling the joint production of good and bad outputs. The environmental production function credits a producer solely for expanding good output production, while the directional environmental distance function credits a producer for simultaneously increasing production of the good output and reducing production of bad outputs. Estimates of technical efficiency and pollution abatement costs are calculated using data from coal-fired power plants. These results provide the empirical basis for comparing the environmental production function to the environmental directional distance function.
Keywords: Environmental production functions; Environmental directional distance functions; Pollution abatement costs
by Rolf Färe 1, Shawna Grosskopf 2 and Carl A. Pasurka, Jr. 3,
1. Department of Economics and Department of Agriculture and Resource Economics, Oregon State University, Corvallis, OR 97331, USA
2. Department of Economics, Oregon State University, Corvallis, OR 97331, USA
3. US Environmental Protection Agency, Office of Policy, Economics and Innovation (1809T), 1200 Pennsylvania Ave., N.W., Washington, DC 20460, USA
Energy via Elsevier Science Direct www.ScienceDirect.com
Volume 32, Issue 7; July, 2007; Pages 1055-1066
http://dx.doi.org/10.1016/j.energy.2006.09.005
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