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Axioms of a Polluting Technology: A Materials Balance Approach

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  • Kenneth Løvold Rødseth

    (Institute of Transport Economics-Norwegian Centre for Transport Research)

Abstract

This paper aims to present an economic model characterized by a set of axioms that are consistent with the laws of thermodynamics. Two new axioms—weak G-disposability (i.e., weak directional disposability) and output essentiality—are introduced to satisfy the materials balance principle and the entropy law, respectively. The axiomatic production model is compared to other well-known production models that account for the joint production of good and bad outputs to illustrate the advantages of the new modeling approach.

Suggested Citation

  • Kenneth Løvold Rødseth, 2017. "Axioms of a Polluting Technology: A Materials Balance Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(1), pages 1-22, May.
    • Handle: RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9974-1
    DOI: 10.1007/s10640-015-9974-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Axiomatic production model; Materials balance principle; Weak G-disposability; Essentiality; Environmental efficiency;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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