Output, emissions, and technology: Some thoughts

Neha Khanna

Economics Letters, 2013, vol. 118, issue 2, 284-286

Abstract: The principal goal of this article is to identify the implications of a binding emission constraint on a firm’s optimal capital–labor ratio and to determine whether it is appropriate to write a firm’s production function as an increasing function of its emissions alone. I find that even though a firm’s supply curve may be written as a positive function of its emissions, it is not appropriate to write the production technology as an increasing function of only its emissions, except under special circumstances.

Keywords: Emissions; Production function; Optimal input ratio; Supply function; Shadow prices (search for similar items in EconPapers)
JEL-codes: D24 Q50 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:2:p:284-286

DOI: 10.1016/j.econlet.2012.11.007

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