Modeling Emission-Generating Technologies: Reconciliation of Axiomatic and By-Production Approaches

Sushama Murty () and R. Russell
Additional contact information
R. Russell: University of California, Riverside

No 1603, Discussion Papers from University of Exeter, Department of Economics

Abstract: We study the link between the by-production approach of Murty, Russell, and Levkoff [2012 J. Environ. Econ.] (MRL) and the axiomatic approach of Murty [2015 Econ. Theory] to modelling emission-generating technologies. We show that the by-production technology of MRL, obtained as an intersection of two independent sub-technologies, satisfies all the Murty axioms. Conversely, a technology satisfying all these axioms decomposes into two independent subtechnologies having the MRL features. These two sub-technologies, refl ect, respectively, the relations between goods in intended-output production designed by human engineers, on the one hand, and the emission-generating mechanism of nature governed by material-balance considerations, on the other. In either approach, the technology can be functionally represented by two radial distance functions with well-defined properties. These distance functions can also serve as measures of technological and environmental efficiency. We exploit the link between the by-production and axiomatic approaches to offer preliminary suggestions about suitable functional forms for the empirical estimation of the two distance functions.

Keywords: emission-generating technologies; by-production technologies; free input and output disposability; costly disposability; distance function. (search for similar items in EconPapers)
JEL-codes: D20 D24 Q50 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-eff and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://exetereconomics.github.io/RePEc/dpapers/DP1603.pdf (application/pdf)

Related works:
Journal Article: Modeling emission-generating technologies: reconciliation of axiomatic and by-production approaches (2018)
Working Paper: Modeling emission-generating technologies: Reconciliation of axiomatic and by-production approaches
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:exe:wpaper:1603

Access Statistics for this paper

More papers in Discussion Papers from University of Exeter, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sebastian Kripfganz ().