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Regulation, pollution and heterogeneity in Japanese steam power generation companies

By Carlos Pestana Barros and Shunsuke Managi


In this paper, the random stochastic frontier model is used to estimate the technical efficiency of Japanese steam power generation companies taking into regulation and pollution. The companies are ranked according to their productivity for the period 1976-2003 and homogenous and heterogeneous variables in the cost function are disentangled. Policy implication is derived.Japan Energy companies Efficiency

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