Environmental regulation, productive efficiency and cost of pollution abatement: a case study of the sugar industry in India |
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Authors: | Murty M N Kumar Surender Paul Mahua |
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Institution: | Institute of Economic Growth, Delhi University Enclave, Delhi 110007, India. mnm@ieg.ernet.in |
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Abstract: | In this paper the input distance function is estimated for the Indian Sugar industry under alternative assumptions of weak and strong disposability of bad outputs. The estimated distance function is used to make the estimates of environmental efficiency, Malmquist productivity index and shadow prices of pollutants. The technical efficiency measure estimated under the assumption of weak disposability of bad outputs is utilized to test the Porter hypothesis. Marginal costs of pollution abatement functions are estimated for different pollutants of water. Pollutant specific taxes are computed using the tax-standards method. |
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Keywords: | Environmental efficiency Malmquist productivity index Shadow prices of pollutants Win–win opportunities |
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