Modelling environmental adjustments of production technologies: A literature review: Externalities and environmental studies

Hervé Dakpo, Frederic Ang*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

3 Citations (Scopus)

Abstract

This chapter theoretically discusses existing methodologies to model environmental adjustments of technologies. We elaborate on the limitations of treating pollution as an input or weakly disposable output, as commonly occurs in the literature. Moreover, we discuss the drawbacks of models that rely on the materials balance principle. We advocate the use of multi-equation modelling, which explicitly models the subprocesses of the production technology. Applied to the context of pollution, such an approach separately models the conventional technology, on the one hand, and the pollution-generating technology, on the other. Finally, we discuss abatement options as well as the possibility of adjusting for good environmental outputs (e.g. carbon sinks).

Original languageEnglish
Title of host publicationThe Palgrave Handbook of Economic Performance Analysis
EditorsT. ten Raa, W.H. Greene
Place of PublicationCham
PublisherPalgrave Macmillan
Pages601-657
Number of pages57
ISBN (Electronic)9783030237271
ISBN (Print)9783030237264
DOIs
Publication statusPublished - 14 Dec 2019

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