IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v7y2001i3p310-32610.1007-bf02295400.html
   My bibliography  Save this article

BOD 7 production function of the Finnish pulp and paper industry

Author

Listed:
  • Minna-Maari Karvonen

Abstract

Traditional neoclassical production theory analyzes the relationship in a production process between inputs and outputs which have a positive market value for the producer. The externalities of production, which have nonpositive market values, are discarded or included as the cost in a cost function. This paper studies the relationship between biological oxygen demand (BOD) emissions, an output of nonpositive value, and traditional factors of production, that is, investments, labor, output, and raw materials. An emissions production function is theoretically presented and empirically estimated with data from the Finnish pulp and paper industry. The approach is based on the observation that it is the minimization of effluents rather than, or together with, the maximization of yields, that increasingly defines the technological frontier of production processes. The empirical function estimation demonstrates the validity of the proposed novel modeling approach. Copyright International Atlantic Economic Society 2001

Suggested Citation

  • Minna-Maari Karvonen, 2001. "BOD 7 production function of the Finnish pulp and paper industry," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(3), pages 310-326, August.
    • Handle: RePEc:kap:iaecre:v:7:y:2001:i:3:p:310-326:10.1007/bf02295400
    DOI: 10.1007/BF02295400
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02295400
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02295400?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert Repetto & Dale Rothman & Paul Faeth & Duncan Austin, 1997. "Has Environmental Protection Really Reduced Productivity Growth?," Challenge, Taylor & Francis Journals, vol. 40(1), pages 46-57, January.
    2. Dale W. Jorgenson & Peter J. Wilcoxen, 1990. "Environmental Regulation and U.S. Economic Growth," RAND Journal of Economics, The RAND Corporation, vol. 21(2), pages 314-340, Summer.
    3. Edward Barbier, 1999. "Endogenous Growth and Natural Resource Scarcity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(1), pages 51-74, July.
    4. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-674, August.
    5. Carlo Carraro, 1998. "New Economic Theories," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 365-381, April.
    6. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    7. Henk Folmer & H. L. Gabel & Hans Opschoor (ed.), 1995. "Principles of Environmental and Resource Economics," Books, Edward Elgar Publishing, number 168.
    8. Vatn Arild & Bromley Daniel W., 1994. "Choices without Prices without Apologies," Journal of Environmental Economics and Management, Elsevier, vol. 26(2), pages 129-148, March.
    9. Osmo Forssell & Karen Polenske, 1998. "Introduction: Input-Output and the Environment," Economic Systems Research, Taylor & Francis Journals, vol. 10(2), pages 91-97.
    10. Barbera, Anthony J. & McConnell, Virginia D., 1990. "The impact of environmental regulations on industry productivity: Direct and indirect effects," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 50-65, January.
    11. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-891, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alfredsson, Eva & Månsson, Jonas & Vikström, Peter, 2016. "Internalising external environmental effects in efficiency analysis," Economic Analysis and Policy, Elsevier, vol. 51(C), pages 22-31.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karvonen, Minna-Maari, 2001. "Natural versus manufactured capital: win-lose or win-win? A case study of the Finnish pulp and paper industry," Ecological Economics, Elsevier, vol. 37(1), pages 71-85, April.
    2. Ambec, Stefan & Barla, Philippe, 2001. "Productivité et réglementation environnementale: une analyse de l'hypothèse de Porter," Cahiers de recherche 0107, Université Laval - Département d'économique.
    3. Conchita Ayerbe & Carmen Górriz, 2001. "The Effects of Environmental Regulations on the Productivity of Large Companies: An Empirical Analysis of the Spanish Case," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(2), pages 129-152, June.
    4. Bruce Domazlicky & William Weber, 2004. "Does Environmental Protection Lead to Slower Productivity Growth in the Chemical Industry?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(3), pages 301-324, July.
    5. Managi, Shunsuke & Opaluch, James J. & Jin, Di & Grigalunas, Thomas A., 2006. "Stochastic frontier analysis of total factor productivity in the offshore oil and gas industry," Ecological Economics, Elsevier, vol. 60(1), pages 204-215, November.
    6. Marthin G Nanere & Iain Fraser, 2001. "Total Factor Productivity as a Measure of Weak Sustainability," Working Papers 2001.03, School of Economics, La Trobe University.
    7. Johan Brolund & Robert Lundmark, 2017. "Effect of Environmental Regulation Stringency on the Pulp and Paper Industry," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    8. Murty, Sushama & Russell, R. Robert, 2010. "On modeling pollution-generating technologies," The Warwick Economics Research Paper Series (TWERPS) 931, University of Warwick, Department of Economics.
    9. Dietrich Earnhart & Dylan G. Rassier, 2016. "“Effective regulatory stringency” and firms’ profitability: the effects of effluent limits and government monitoring," Journal of Regulatory Economics, Springer, vol. 50(2), pages 111-145, October.
    10. Xiguang Cao & Min Deng & Fei Song & Shihu Zhong & Junhao Zhu, 2019. "Direct and moderating effects of environmental regulation intensity on enterprise technological innovation: The case of China," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-20, October.
    11. Rassier, Dylan G. & Earnhart, Dietrich, 2015. "Effects of environmental regulation on actual and expected profitability," Ecological Economics, Elsevier, vol. 112(C), pages 129-140.
    12. Elsadig Musa Ahmed & Khalid Eltayeb Elfaki, 2024. "Green Technological Progress Implications on Long-Run Sustainable Economic Growth," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6860-6877, June.
    13. Eli Berman & Linda T. Bui, 1997. "band Labor Demand: Evidence from the South Coast Air Basin," NBER Working Papers 6299, National Bureau of Economic Research, Inc.
    14. Hamamoto, Mitsutsugu, 2006. "Environmental regulation and the productivity of Japanese manufacturing industries," Resource and Energy Economics, Elsevier, vol. 28(4), pages 299-312, November.
    15. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    16. Eli Berman & Linda T. M. Bui, 2001. "Environmental Regulation And Productivity: Evidence From Oil Refineries," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 498-510, August.
    17. Scott Atkinson & Jeffrey Dorfman, 2005. "Multiple Comparisons with the Best: Bayesian Precision Measures of Efficiency Rankings," Journal of Productivity Analysis, Springer, vol. 23(3), pages 359-382, July.
    18. Wei Shan & Jingyi Wang, 2019. "The Effect of Environmental Performance on Employment: Evidence from China’s Manufacturing Industries," IJERPH, MDPI, vol. 16(12), pages 1-18, June.
    19. Jianting Lin & Changxin Xu, 2017. "The Impact of Environmental Regulation on Total Factor Energy Efficiency: A Cross-Region Analysis in China," Energies, MDPI, vol. 10(10), pages 1-17, October.
    20. Pizer, William A. & Kopp, Raymond, 2005. "Calculating the Costs of Environmental Regulation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 25, pages 1307-1351, Elsevier.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iaecre:v:7:y:2001:i:3:p:310-326:10.1007/bf02295400. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.