The Effects of Sulfur Dioxide Controls on Productivity Change in the U.S. Electric Power Industry

Suthathip Yaisawarng and J Douglass Klein

The Review of Economics and Statistics, 1994, vol. 76, issue 3, 447-60

Abstract: Data envelopment analysis is used to compute a cumulative Malmquist input-based productivity index for coal-burning plants in the U.S. electric generating industry in the 1980s. The authors account for inputs used to control sulfur emissions as well as emissions outputs, and decompose the index into changes in technical efficiency, changes in technology, and changes in scale efficiency. They find that productivity decreased from 1985 to each of their first three target years but grew in the 1985-89 comparison, and that 18.5 percent of their plants, and 27 percent of net generation, lie in the decreasing returns region of the production set. Copyright 1994 by MIT Press.

Date: 1994
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