The Environment as a Factor of Production

Considine, Timothy J. ; Larson, Donald F.

World Bank, Washington, D.C.

关键词: ABATEMENT;    ABATEMENT COST;    ABATEMENT COST FUNCTIONS;    ABATEMENT COSTS;    ACID RAIN;   

DOI  :  10.1596/1813-9450-3271
RP-ID  :  WPS3271

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The authors develop a model ofenvironmental resource use in production with an empiricalanalysis of how electric power companies consume and banksulfur dioxide pollution permits. The model considersemissions, fuels, and labor as variable inputs withquasi-fixed inputs of permits and capital. Incorporatinginformation from permit markets allows the authors todistinguish between user costs and asset shadow values.Their findings indicate that firms are holding stocks ofpollution permits for reasons other than short-term costsavings. The results also reveal substantial substitutionpossibilities between emissions, permits stocks, and otherfactors of production. The authors speculate thatanticipated secondary markets for carbon-offset inventoriesrelated to the flexibility mechanisms of the Kyoto Protocolwill have similar effects for greenhouse-gas emitting firms.