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

Huiban, Jean-Pierre; Mastromarco, Camille; Musolesi, Antonio; Simioni, Michel

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

Jean-Pierre Huiban, Camille Mastromarco, Antonio Musolesi () and Michel Simioni ()
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Camille Mastromarco: Dipartimento di Scienze dell'Economia - Università del Salento = University of Salento [Lecce]
Michel Simioni: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier

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Abstract: This paper estimates 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; full and partial order frontiers; generalized product kernels; infinite ordre cross-validated local polynomial regression (search for similar items in EconPapers)
Date: 2016-12-08
Note: View the original document on HAL open archive server: https://hal.science/hal-01419768v1
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Published in 10. Journées de recherches en sciences sociales (JRSS), Société Française d'Economie Rurale (SFER). FRA.; Centre de Coopération Internationale en Recherche Agronomique pour le Développement (CIRAD). FRA.; Institut National de la Recherche Agronomique (INRA). FRA., Dec 2016, Paris, France. 29 p

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