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Output, emissions, and technology: Some thoughts

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  • Khanna, Neha

Abstract

The principal goal of this article is to identify the implications of a binding emission constraint on a firm’s optimal capital–labor ratio and to determine whether it is appropriate to write a firm’s production function as an increasing function of its emissions alone. I find that even though a firm’s supply curve may be written as a positive function of its emissions, it is not appropriate to write the production technology as an increasing function of only its emissions, except under special circumstances.

Suggested Citation

  • Khanna, Neha, 2013. "Output, emissions, and technology: Some thoughts," Economics Letters, Elsevier, vol. 118(2), pages 284-286.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:284-286
    DOI: 10.1016/j.econlet.2012.11.007
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    References listed on IDEAS

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    More about this item

    Keywords

    Emissions; Production function; Optimal input ratio; Supply function; Shadow prices;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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