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The impact of pollution abatement investments on production technology: a nonparametric approach

Jean-Pierre Huiban, Camilla Mastromarco (), Antonio Musolesi and Michel Simioni
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Antonio Musolesi: University of Ferrara, Italy
Michel Simioni: INRA, UMR 1110 MOISA, Montpellier, France

No 918, SEEDS Working Papers from SEEDS, Sustainability Environmental Economics and Dynamics Studies

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, effciency analysis and nonparametric kernel regression by adopting a conditional nonparametric frontier analysis. Second, we focus not only on the average effect but also search for potential nonlinearities. We provide new results suggesting that pollution abatement capital affects with a bell-shaped fashion technological catch-up (ineffciency distribution) and does not affect technological change (shifts in the frontier). These results have relevant implications both for modeling and for the purposes of advice on environmentally friendly policy.

Keywords: Pollution abatement investments; technology; conditional nonparametric frontier analysis; full and partial order frontiers; location-scale nonparametric regression; infinite order cross-validated local polynomial regression; separability condition. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-ene and nep-env
Date: 2018-09, Revised 2018-09
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http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/0918.pdf First version, 2018 (application/pdf)
http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/0918.pdf Revised version, 2018 (application/pdf)

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