On the properties of an emission-generating technology and its parametric representation

Sushama Murty
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Sushama Murty: Department of Economics, University of Exeter

No 1202, Discussion Papers from University of Exeter, Department of Economics

Abstract: We propose a set of comprehensive axioms that seek to capture our intuitive understanding of the properties of an emission-generating technology (EGT). We show that an EGT that satis es these axioms can be parametrically represented by more than one implicit production function that are derived from it. Here, these production functions take the form of distance functions rst introduced by Shephard [1953] and Malmquist [1953]. One of these production relations has properties of a neo-classical production function that shows how standard inputs are transformed into standard (intended) outputs. The remaining re ect trade-offs, observed in nature, between emissions, emission-causing goods, and cleaning-up activities of the producing unit. We illustrate this by considering two cases: (i) where each type of cleaning-up activity jointly mitigates all types of emissions and (ii) where cleaning-up activities are emission-speci c allowing also for the possibility that a cleaning-up activity while helping to reduce certain emissions, can also contribute to more of some other types of emissions.

Keywords: theory of production; emission-generating production technologies; free input and output disposability; weak disposability; costly disposability; functional representations of multi-output production technologies. (search for similar items in EconPapers)
JEL-codes: D20 D24 Q50 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-eff, nep-ene, nep-env and nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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