Weak Disposability in Nonparametric Production Analysis with Undesirable Outputs

American Journal of Agricultural Economics - Tập 87 Số 4 - Trang 1077-1082 - 2005
Timo Kuosmanen1
1Environmental Economics and Natural Resources Group at Wageningen University in The Netherlands

Tóm tắt

Weak disposability of outputs means that firms can abate harmful emissions by decreasing the activity level. Modeling weak disposability in nonparametric production analysis has caused some confusion. This article identifies a dilemma in these approaches: conventional formulations implicitly and unintentionally assume all firms apply uniform abatement factors. However, it is usually cost‐effective to abate emissions in those firms where the marginal abatement costs are lowest. This article presents a simple formulation of weak disposability that allows for non‐uniform abatement factors and preserves the linear structure of the model.

Từ khóa


Tài liệu tham khảo

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Thông tin
Thông tin xuất bản

American Journal of Agricultural Economics

Tập 87 Số 4

1077-1082

Thông tin tác giả