Analyzing Interplant Marginal Abatement Cost Differences: A Directional Output Distance Function Approach

The purpose of this paper is to compute and evaluate producers’ marginal abatement costs (MACs). These costs are obtained by calculating shadow prices of bad outputs from the production technology, which is represented by the estimated directional output distance function. To be more specific, this paper considers the Swedish pulp industry when the regulatory authority has granted each producing plant a maximally allowed emission level. In each case, area residents and other parties concerned have been allowed to express their views, which possibly prepared the way for other factors than prescribed by environmental law, to influence the stringency of the finally allowed emission levels and, therefore, the MACs. The main focus is on whether the calculated MACs reveal that differences between counties in, e.g., economical characteristics, were influential when the authority, during 1983-1990, restricted 12 geographically scattered pulp plants regarding emissions. The result indicates that the MACs vary between many of the plants and that county differences were taken into account when imposing environmental restrictions on the plants.bad output; environmental regulation; marginal abatement cost; shadow price; parametric directional output distance function

Parametric Estimation Of Technical And Scale Efficiencies In Italian Citrus Farming

Ray (1998) has proposed a model for estimating scale efficiency using a parametric approach. Following this methodology, a scale efficiency measure is obtained from the estimated parameters of the production frontier function and from the estimated scale elasticities. This study aims to estimate technical and scale efficiencies achieved by the Italian citrus fruit-growing farms. A stochastic frontier production model is considered in order to estimate technical and scale efficiencies. The analysis is expected to estimate the role of both technical and scale efficiencies in conditioning productivity. Particular attention is put on determining the (technical and scale) inefficiency effects associated with a set of structural and environmental variables that should affect efficiency and on the relationship between technical and scale efficiency scores. Empirical findings suggest that the greater portion of overall inefficiency in the sample might depend on producing below the production frontier than on operating under an inefficient scale. Indeed, room for improving technical efficiency is, on average, larger (29%) than the margin due to scale inefficiency (18.2%). Results also indicate a weak relationship between the two efficiency measures.Technical efficiency Scale efficiency Stochastic Frontier Analysis Citrus farming Italy

The technical efficiency of Public Libraries in the Czech Republic

The purpose of this article is to define and evaluate the development of the aggregated technical efficiency of public libraries in the Czech Republic from 1993 to 2014. To simulate technical efficiency, the Data Envelopment Analysis Model (The BCC model) was chosen. To evaluate the production units (the unit of the Czech Republic from 1993 to 2014 and its production is given by the sum of real homogenous units, i.e. the public libraries operating in a given area and in a given time), two input variables (the recalculated number of employees and the library collection) and two output variables (the number of registered readers and the number of loans) were analysed. Two basic models were simulated – the M1 model oriented to inputs and the M2 model oriented to outputs. Correlation between the input and output variables was researched using Pearson’s coefficient. Within the range of the M1 and M2 basic models, partial models were simulated. All of the basic and partial models identically showed eight efficient periods of public libraries in the Czech Republic (1995, 1997, 1999–2000, 2002–2005). Public libraries were, according to the chosen variables, inefficient in the remaining 16 observed years

Modeling Cultural Dynamics

EVOC (for EVOlution of Culture) is a computer model of culture that enables us to investigate how various factors such as barriers to cultural diffusion, the presence and choice of leaders, or changes in the ratio of innovation to imitation affect the diversity and effectiveness of ideas. It consists of neural network based agents that invent ideas for actions, and imitate neighbors’ actions. The model is based on a theory of culture according to which what evolves through culture is not memes or artifacts, but the internal models of the world that give rise to them, and they evolve not through a Darwinian process of competitive exclusion but a Lamarckian process involving exchange of innovation protocols. EVOC shows an increase in mean fitness of actions over time, and an increase and then decrease in the diversity of actions. Diversity of actions is positively correlated with population size and density, and with barriers between populations. Slowly eroding borders increase fitness without sacrificing diversity by fostering specialization followed by sharing of fit actions. Introducing a leader that broadcasts its actions throughout the population increases the fitness of actions but reduces diversity of actions. Increasing the number of leaders reduces this effect. Efforts are underway to simulate the conditions under which an agent immigrating from one culture to another contributes new ideas while still ‘fitting in’

Estimation of Marginal Abatement Cost of Air Pollution in Durgapur City of West Bengal

Air pollution in industrial cities with emissions from firms is a growing problem in India. Durgapur, one of the growing industrial cities in eastern India, covering a host of industries, suffers from similar problems. The paper estimates the marginal abatement cost of air pollution of industries in Durgapur, West Bengal. We model the technology of a firm with output-distance function. Here the linear programming approach is adopted to estimate the shadow prices and distance values. Results reveal that there is a wide variation in shadow prices of Suspended Particulate Matter and distance values between firms under particular category of industries thus indicating the variability in the degree of compliance, use of resources and the vintages of capital. In this context the paper suggests policies for air quality management in urban industrial areas of West Bengal which will help to achieve sustainable industrial development.Output Distance Function, Shadow Prices, Distance Values

Climate Policy and the Optimal Extraction of High- and Low-Carbon Fossil Fuels

We study how restricting CO2 emissions affcts resource prices and depletion over time.We use a Hotelling-style model with two nonrenewable fossil fuels that differ in their carbon content (e.g. coal and natural gas) and that are imperfect substitutes in final good production.We study both an unexpected constraint and an anticipated constraint.Both shocks induce intertemporal substitution of resource use.When emissions are unexpectedly restricted, it is cost-effective to use high-carbon resources relatively more (less) intensively on impact if this resource is relatively scarce (abundant).If the emission constraint is anticipated, it is cost-effective to use relatively more (less) of the low-carbon input before the constraint becomes binding, in order to conserve relatively more (less) of the high-carbon input for the period when climate policy is active in case the high-carbon resource is relatively scarce (abundant).Climate policy;non-renewable resources;input substitution