A theoretical measure of environmental efficiency

Pierre-André Jouvet, Philippe Michel and Gilles Rotillon
Additional contact information
Gilles Rotillon: THEMA

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: We study, in a simple model, the partial equilibrium of an industry with n firms endowed by different technologies which have different pollution effects. The price of input (labour) and the demand curve to the industry are given. Pollution is restricted by a tradable market of permits in the industry. We define an environmental efficiency factor for each firm. Given the total dotation of permits, the larger is the environmental efficiency factor, the larger is the firm's contribution to total production. To study the long run efficiency, we explicit the role of capital in production and obtain a proportional environmental efficiency factor. Last, we analyze the consequences of permits' allocations on the profitability of the firms.

Keywords: Environmental efficiency factor; environmental performance; indicators; market of permits; undesirable output. (search for similar items in EconPapers)
JEL-codes: D2 D61 L19 Q28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env and nep-res
Date: 2004-02
View list of references View citations in EconPapers

Downloads: (external link)
ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/V04011.pdf (application/pdf)

Related works:
Working Paper: A theoretical measure of environmental efficiency (2003)
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: http://EconPapers.repec.org/RePEc:mse:wpsorb:v04011

Access Statistics for this paper

More papers in Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)
Contact information at EDIRC.
Series data maintained by Jacqueline Pradel ().