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Which bad is worst?: An application of Johansen's capacity model
Oregon State University.
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Oregon State University and SLU.
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). SLU.
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Centre for Regional Science (CERUM). SLU.
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2013 (English)Report (Other academic)
Abstract [en]

The production of desirable (good) outputs is frequently accompanied by unintended production of undesirable (bad) outputs. If two or more of these undesirable outputs are produced as byproducts, one may ask: ‘Which bad is worst?’ By worst we mean which bad inhibits the production of desirable outputs the most if it is regulated. We develop a model based on Leif Johansen’s capacity framework by estimating the capacity limiting effect of the bads. Our model resembles what is referred to as the von Liebig Law of the Minimum, familiar from the agricultural economics literature. To illustrate our model we apply our approach to a firm level data set from the Swedish paper and pulp industry.

Place, publisher, year, edition, pages
Umeå: Department of Economics, Umeå University , 2013. , 20 p.
Series
CERE Working Paper / CERE arbetsrapport, 2013:2
Keyword [en]
von Liebig Law of the Minimum, DEA, emissions, regulation
National Category
Economics Earth and Related Environmental Sciences
Identifiers
URN: urn:nbn:se:umu:diva-88446OAI: oai:DiVA.org:umu-88446DiVA: diva2:715703
Funder
Swedish Energy Agency
Available from: 2014-05-06 Created: 2014-05-06 Last updated: 2016-09-14Bibliographically approved

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fulltext(343 kB)288 downloads
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Type fulltextMimetype application/pdf

Authority records BETA

Lundgren, TommyMarklund, Per-OlovWenchao, Zhou

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Grosskopf, ShawnaLundgren, TommyMarklund, Per-OlovWenchao, Zhou
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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf