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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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    1. Katsuyuki Shibayama & Iain Fraser, 2014. "Nonhomothetic Growth Models For The Environmental Kuznets Curve," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(3), pages 919-942, August.
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    4. Hallegatte, Stephane & Heal, Geoffrey & Fay, Marianne & Treguer, David, 2011. "From growth to green growth -- a framework," Policy Research Working Paper Series 5872, The World Bank.
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    10. Blandford, David & Gaasland, Ivar & Vardal, Erling, 2011. "Activity level, emission intensity, and optimal GHG abatement policy: An application to Norwegian agriculture," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108780, Agricultural Economics Society.
    Full references (including those not matched with items 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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