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Modeling pollution abatement technologies as a network

In: New Directions in Productivity Measurement and Efficiency Analysis

Author

Listed:
  • Rolf G. Färe
  • Shawna Grosskopf
  • Carl A. Pasurka Jr.

Abstract

One approach used to calculate the costs and productivity changes associated with pollution abatement involves modeling the joint production of good and bad outputs. The joint production model treats the process of transforming inputs into good and bad outputs as a black box. We investigate the consequences of generalizing the transformation process by introducing a network technology that looks inside the black box, which consists of a set of sub-technologies or sub-processes. Both models are operationalized using a panel dataset of coal-fired power plants to compare empirical results generated by the two specifications of the production technology.

Suggested Citation

  • Rolf G. Färe & Shawna Grosskopf & Carl A. Pasurka Jr., 2017. "Modeling pollution abatement technologies as a network," Chapters, in: Tihomir Ancev & M. A.S. Azad & Francesc Hernández-Sancho (ed.), New Directions in Productivity Measurement and Efficiency Analysis, chapter 3, pages 59-79, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:17409_3
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    Cited by:

    1. Rolf Färe & Shawna Grosskopf, 2021. "Comments: Performance measurement and joint production of intended and unintended outputs," Journal of Productivity Analysis, Springer, vol. 55(3), pages 189-193, June.
    2. Hampf, Benjamin & Rødseth, Kenneth Løvold, 2019. "Environmental efficiency measurement with heterogeneous input quality: A nonparametric analysis of U.S. power plants," Energy Economics, Elsevier, vol. 81(C), pages 610-625.

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    Keywords

    Economics and Finance; Environment;

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