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A generalization of environmental productivity analysis

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Abstract

This paper aims to analyze environmental Total Factor Productivity (TFP) change. Indeed, innovative environmental TFP measures are introduced through convex and non convex environmental production processes. Hence, the impacts of input and output quality change on environmental productivity variation are underscored. In addition, general decomposition of the new ratio- and difference-based environmental TFP measures is proposed. Finally, an empirical example is provided to illustrate these propositions.

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Notes

  1. Sahoo et al. (2011) propose a survey on the modeling of environmental production technologies by considering either weak or strong disposability assumptions for undesirable outputs.

  2. In Tone and Sahoo (2003) and Sahoo and Tone (2013), the authors specify that indivisibility in production process occurs when some capital goods are only available in certain amount (e.g. integer amount) involving an optimum capacity level such that not using this optimum capacity would lead to an increase of the unit cost. (Lipsey, 2018) refers to this definition as the ex post indivisibility.

  3. In this paper, the term “quality” refers to the polluting and the no polluting characteristics of inputs and outputs.

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Acknowledgements

We would like to thank the three anonymous referees for their helpful comments that greatly improved the exposition of the paper.

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Authors and Affiliations

  1. University of Lorraine, University of Strasbourg, AgroParisTech, CNRS, INRAE, BETA, 54000, Nancy, France

    A. Abad

  2. University of Perpignan, LAMPS, 52 avenue Paul Alduy, 66000, Perpignan, France

    P. Ravelojaona

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  1. A. Abad
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Correspondence to A. Abad.

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Abad, A., Ravelojaona, P. A generalization of environmental productivity analysis. J Prod Anal 57, 61–78 (2022). https://doi.org/10.1007/s11123-021-00620-1

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