The impact of pollution abatement investments on production technology: new insights from frontier analysis

Antonio Musolesi (), Jean-Pierre Huiban, Camilla Mastromarco () and Michel Simioni ()

No 2016025, Working Papers from University of Ferrara, Department of Economics

Abstract: This paper attempts to estimate the impact of pollution abatement investments on the production technology of firms by pursuing two new directions. First, we take advantage of recent econometric developments in productivity and efficiency analysis and compare the results obtained with two complementary approaches: parametric stochastic frontier analysis and conditional nonparametric frontier analysis. Second, we focus not only on the average effect but also on its heterogeneity across firms and over time and search for potential nonlinearities. We provide new results suggesting that such an effect is heterogeneous both within firms and over time and indicating that the effect of pollution abatement investments on the production process is not monotonic. These results have relevant implications both for modeling and for the purposes of advice on environmentally friendly policy.

Keywords: Pollution abatement investments; technology; stochastic frontier analysis; conditional nonparametric frontier analysis; generalized product kernels; eneralized local polynomial kernel regression (search for similar items in EconPapers)
JEL-codes: C14 C23 D24 Q50 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2016-05-09
New Economics Papers: this item is included in nep-cse, nep-eff, nep-env and nep-tid
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Related works:
Working Paper: The Impact Of Pollution Abatement Investments On Production Technology: New Insights From Frontier Analysis (2017)
Working Paper: The impact of pollution abatement investments on production technology: new insights from frontier analysis (2017)
Working Paper: The impact of pollution abatement investments on production technology: new insights from frontier analysis (2016)
Working Paper: The impact of pollution abatement investments on production technology: new insights from frontier analysis (2016)
Working Paper: The impact of pollution abatement investments on production technology: new insights from frontier analysis (2016)
Working Paper: The impact of pollution abatement investments on production technology: new insights from frontier analysis (2016)
Working Paper: The impact of pollution abatement investments on production technology: new insights from frontier analysis (2016)
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