The Environment as a Factor of Production

The authors develop a model of environmental resource use in production with an empirical analysis of how electric power companies consume and bank sulfur dioxide pollution permits. The model considers emissions, fuels, and labor as variable inputs...

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Main Authors:	Considine, Timothy J., Larson, Donald F.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	ABATEMENT ABATEMENT COST ABATEMENT COST FUNCTIONS ABATEMENT COSTS ACID RAIN AIR QUALITY AIR QUALITY STANDARDS ALLOCATION OF PERMITS ALLOWANCE TRADING ARBITRAGE BASELINE LEVELS CAPITAL GAIN CARBON CARBON DIOXIDE CLEAN AIR CLEAN AIR ACT CLEAN AIR ACT AMENDMENTS COAL COAL MINING COAL USE COMMON PROPERTY COMMON PROPERTY RESOURCES COMPLIANCE COSTS CONSTANT RETURNS TO SCALE CONVERGENCE COST SAVINGS DEREGULATION DESULFURIZATION DISCOUNT RATE DISEQUILIBRIUM DIVERGENCE ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC INCENTIVES ECONOMIES OF SCALE ELASTICITIES ELECTRIC POWER ELECTRIC POWER PLANTS ELECTRICITY EMISSION EMISSION CONTROL EMISSION CONTROLS EMISSION STANDARDS EMISSIONS EMISSIONS CONSTRAINTS EMISSIONS REDUCTIONS EMISSIONS STANDARDS EMPIRICAL ANALYSIS EMPIRICAL STUDIES ENVIRONMENTAL DAMAGES ENVIRONMENTAL ECONOMICS ENVIRONMENTAL POLICY ENVIRONMENTAL POLLUTANTS ENVIRONMENTAL PROTECTION ENVIRONMENTAL PROTECTION AGENCY ENVIRONMENTAL RESOURCES EQUILIBRIUM FIXED INPUTS FUEL FUEL SWITCHING FUEL USE FUELS GAS GENERATION CAPACITY GENERATION UNITS GREENHOUSE GREENHOUSE GASES HIGH SULFUR COAL INDUSTRIAL BOILERS INFLATION INPUT PRICES INPUT USE INTEREST RATE INVENTORIES LOW SULFUR COAL LOW SULFUR COAL PRICES MARGINAL ABATEMENT MARGINAL ABATEMENT COST MARGINAL ABATEMENT COSTS MARGINAL COST MARGINAL COSTS MARGINAL EMISSIONS MARKET PRICES MERCURY NATURAL RESOURCE ECONOMICS NITROGEN NITROGEN OXIDE OPPORTUNITY COST OZONE PERMIT PRICE PERMIT SALES PERMIT TRADING PERMITS PET POLICY INSTRUMENTS POLLUTION POLLUTION ABATEMENT POLLUTION CONTROL POLLUTION PERMITS POWER GENERATION POWER PLANTS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROFIT MAXIMIZATION QUALITY STANDARDS RAW MATERIALS REDUCING EMISSIONS RESOURCE USE RETROFITTING RISK PREMIUM SECONDARY MARKETS SO2 SOLID WASTES SPOT MARKET SUBSTITUTION ELASTICITIES SULFUR SULFUR DIOXIDE TECHNOLOGICAL CHANGE TIME SERIES TOTAL COSTS TRADABLE PERMITS TRANSACTIONS COSTS UNDERESTIMATES UTILITIES VALUATION VARIABLE INPUTS ENVIRONMENTAL ASPECTS OF POLLUTION POLLUTANTS LABOR FACTORS OF PRODUCTION GREENHOUSE GAS EMISSIONS
Online Access:	http://documents.worldbank.org/curated/en/2004/04/4125151/environment-factor-production http://hdl.handle.net/10986/14112

id	okr-10986-14112
recordtype	oai_dc
spelling	okr-10986-141122021-04-23T14:03:20Z The Environment as a Factor of Production Considine, Timothy J. Larson, Donald F. ABATEMENT ABATEMENT COST ABATEMENT COST FUNCTIONS ABATEMENT COSTS ACID RAIN AIR QUALITY AIR QUALITY STANDARDS ALLOCATION OF PERMITS ALLOWANCE TRADING ARBITRAGE BASELINE LEVELS CAPITAL GAIN CARBON CARBON DIOXIDE CLEAN AIR CLEAN AIR ACT CLEAN AIR ACT AMENDMENTS COAL COAL MINING COAL USE COMMON PROPERTY COMMON PROPERTY RESOURCES COMPLIANCE COSTS CONSTANT RETURNS TO SCALE CONVERGENCE COST SAVINGS DEREGULATION DESULFURIZATION DISCOUNT RATE DISEQUILIBRIUM DIVERGENCE ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC INCENTIVES ECONOMIES OF SCALE ELASTICITIES ELECTRIC POWER ELECTRIC POWER PLANTS ELECTRICITY EMISSION EMISSION CONTROL EMISSION CONTROLS EMISSION STANDARDS EMISSIONS EMISSIONS CONSTRAINTS EMISSIONS REDUCTIONS EMISSIONS STANDARDS EMPIRICAL ANALYSIS EMPIRICAL STUDIES ENVIRONMENTAL DAMAGES ENVIRONMENTAL ECONOMICS ENVIRONMENTAL POLICY ENVIRONMENTAL POLLUTANTS ENVIRONMENTAL PROTECTION ENVIRONMENTAL PROTECTION AGENCY ENVIRONMENTAL RESOURCES EQUILIBRIUM FIXED INPUTS FUEL FUEL SWITCHING FUEL USE FUELS GAS GENERATION CAPACITY GENERATION UNITS GREENHOUSE GREENHOUSE GASES HIGH SULFUR COAL INDUSTRIAL BOILERS INFLATION INPUT PRICES INPUT USE INTEREST RATE INVENTORIES LOW SULFUR COAL LOW SULFUR COAL PRICES MARGINAL ABATEMENT MARGINAL ABATEMENT COST MARGINAL ABATEMENT COSTS MARGINAL COST MARGINAL COSTS MARGINAL EMISSIONS MARKET PRICES MERCURY NATURAL RESOURCE ECONOMICS NITROGEN NITROGEN OXIDE OPPORTUNITY COST OZONE PERMIT PRICE PERMIT SALES PERMIT TRADING PERMITS PET POLICY INSTRUMENTS POLLUTION POLLUTION ABATEMENT POLLUTION CONTROL POLLUTION PERMITS POWER GENERATION POWER PLANTS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROFIT MAXIMIZATION QUALITY STANDARDS RAW MATERIALS REDUCING EMISSIONS RESOURCE USE RETROFITTING RISK PREMIUM SECONDARY MARKETS SO2 SOLID WASTES SPOT MARKET SUBSTITUTION ELASTICITIES SULFUR SULFUR DIOXIDE TECHNOLOGICAL CHANGE TIME SERIES TOTAL COSTS TRADABLE PERMITS TRANSACTIONS COSTS UNDERESTIMATES UTILITIES VALUATION VARIABLE INPUTS ENVIRONMENTAL ASPECTS OF POLLUTION ELECTRIC POWER SULFUR DIOXIDE POLLUTANTS EMISSIONS FUELS LABOR FACTORS OF PRODUCTION PERMITS GREENHOUSE GAS EMISSIONS The authors develop a model of environmental resource use in production with an empirical analysis of how electric power companies consume and bank sulfur dioxide pollution permits. The model considers emissions, fuels, and labor as variable inputs with quasi-fixed inputs of permits and capital. Incorporating information from permit markets allows the authors to distinguish between user costs and asset shadow values. Their findings indicate that firms are holding stocks of pollution permits for reasons other than short-term cost savings. The results also reveal substantial substitution possibilities between emissions, permits stocks, and other factors of production. The authors speculate that anticipated secondary markets for carbon-offset inventories related to the flexibility mechanisms of the Kyoto Protocol will have similar effects for greenhouse-gas emitting firms. 2013-06-21T16:05:31Z 2013-06-21T16:05:31Z 2004-04 http://documents.worldbank.org/curated/en/2004/04/4125151/environment-factor-production http://hdl.handle.net/10986/14112 English en_US Policy Research Working Paper;No.3271 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ABATEMENT ABATEMENT COST ABATEMENT COST FUNCTIONS ABATEMENT COSTS ACID RAIN AIR QUALITY AIR QUALITY STANDARDS ALLOCATION OF PERMITS ALLOWANCE TRADING ARBITRAGE BASELINE LEVELS CAPITAL GAIN CARBON CARBON DIOXIDE CLEAN AIR CLEAN AIR ACT CLEAN AIR ACT AMENDMENTS COAL COAL MINING COAL USE COMMON PROPERTY COMMON PROPERTY RESOURCES COMPLIANCE COSTS CONSTANT RETURNS TO SCALE CONVERGENCE COST SAVINGS DEREGULATION DESULFURIZATION DISCOUNT RATE DISEQUILIBRIUM DIVERGENCE ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC INCENTIVES ECONOMIES OF SCALE ELASTICITIES ELECTRIC POWER ELECTRIC POWER PLANTS ELECTRICITY EMISSION EMISSION CONTROL EMISSION CONTROLS EMISSION STANDARDS EMISSIONS EMISSIONS CONSTRAINTS EMISSIONS REDUCTIONS EMISSIONS STANDARDS EMPIRICAL ANALYSIS EMPIRICAL STUDIES ENVIRONMENTAL DAMAGES ENVIRONMENTAL ECONOMICS ENVIRONMENTAL POLICY ENVIRONMENTAL POLLUTANTS ENVIRONMENTAL PROTECTION ENVIRONMENTAL PROTECTION AGENCY ENVIRONMENTAL RESOURCES EQUILIBRIUM FIXED INPUTS FUEL FUEL SWITCHING FUEL USE FUELS GAS GENERATION CAPACITY GENERATION UNITS GREENHOUSE GREENHOUSE GASES HIGH SULFUR COAL INDUSTRIAL BOILERS INFLATION INPUT PRICES INPUT USE INTEREST RATE INVENTORIES LOW SULFUR COAL LOW SULFUR COAL PRICES MARGINAL ABATEMENT MARGINAL ABATEMENT COST MARGINAL ABATEMENT COSTS MARGINAL COST MARGINAL COSTS MARGINAL EMISSIONS MARKET PRICES MERCURY NATURAL RESOURCE ECONOMICS NITROGEN NITROGEN OXIDE OPPORTUNITY COST OZONE PERMIT PRICE PERMIT SALES PERMIT TRADING PERMITS PET POLICY INSTRUMENTS POLLUTION POLLUTION ABATEMENT POLLUTION CONTROL POLLUTION PERMITS POWER GENERATION POWER PLANTS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROFIT MAXIMIZATION QUALITY STANDARDS RAW MATERIALS REDUCING EMISSIONS RESOURCE USE RETROFITTING RISK PREMIUM SECONDARY MARKETS SO2 SOLID WASTES SPOT MARKET SUBSTITUTION ELASTICITIES SULFUR SULFUR DIOXIDE TECHNOLOGICAL CHANGE TIME SERIES TOTAL COSTS TRADABLE PERMITS TRANSACTIONS COSTS UNDERESTIMATES UTILITIES VALUATION VARIABLE INPUTS ENVIRONMENTAL ASPECTS OF POLLUTION ELECTRIC POWER SULFUR DIOXIDE POLLUTANTS EMISSIONS FUELS LABOR FACTORS OF PRODUCTION PERMITS GREENHOUSE GAS EMISSIONS
spellingShingle	ABATEMENT ABATEMENT COST ABATEMENT COST FUNCTIONS ABATEMENT COSTS ACID RAIN AIR QUALITY AIR QUALITY STANDARDS ALLOCATION OF PERMITS ALLOWANCE TRADING ARBITRAGE BASELINE LEVELS CAPITAL GAIN CARBON CARBON DIOXIDE CLEAN AIR CLEAN AIR ACT CLEAN AIR ACT AMENDMENTS COAL COAL MINING COAL USE COMMON PROPERTY COMMON PROPERTY RESOURCES COMPLIANCE COSTS CONSTANT RETURNS TO SCALE CONVERGENCE COST SAVINGS DEREGULATION DESULFURIZATION DISCOUNT RATE DISEQUILIBRIUM DIVERGENCE ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC INCENTIVES ECONOMIES OF SCALE ELASTICITIES ELECTRIC POWER ELECTRIC POWER PLANTS ELECTRICITY EMISSION EMISSION CONTROL EMISSION CONTROLS EMISSION STANDARDS EMISSIONS EMISSIONS CONSTRAINTS EMISSIONS REDUCTIONS EMISSIONS STANDARDS EMPIRICAL ANALYSIS EMPIRICAL STUDIES ENVIRONMENTAL DAMAGES ENVIRONMENTAL ECONOMICS ENVIRONMENTAL POLICY ENVIRONMENTAL POLLUTANTS ENVIRONMENTAL PROTECTION ENVIRONMENTAL PROTECTION AGENCY ENVIRONMENTAL RESOURCES EQUILIBRIUM FIXED INPUTS FUEL FUEL SWITCHING FUEL USE FUELS GAS GENERATION CAPACITY GENERATION UNITS GREENHOUSE GREENHOUSE GASES HIGH SULFUR COAL INDUSTRIAL BOILERS INFLATION INPUT PRICES INPUT USE INTEREST RATE INVENTORIES LOW SULFUR COAL LOW SULFUR COAL PRICES MARGINAL ABATEMENT MARGINAL ABATEMENT COST MARGINAL ABATEMENT COSTS MARGINAL COST MARGINAL COSTS MARGINAL EMISSIONS MARKET PRICES MERCURY NATURAL RESOURCE ECONOMICS NITROGEN NITROGEN OXIDE OPPORTUNITY COST OZONE PERMIT PRICE PERMIT SALES PERMIT TRADING PERMITS PET POLICY INSTRUMENTS POLLUTION POLLUTION ABATEMENT POLLUTION CONTROL POLLUTION PERMITS POWER GENERATION POWER PLANTS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROFIT MAXIMIZATION QUALITY STANDARDS RAW MATERIALS REDUCING EMISSIONS RESOURCE USE RETROFITTING RISK PREMIUM SECONDARY MARKETS SO2 SOLID WASTES SPOT MARKET SUBSTITUTION ELASTICITIES SULFUR SULFUR DIOXIDE TECHNOLOGICAL CHANGE TIME SERIES TOTAL COSTS TRADABLE PERMITS TRANSACTIONS COSTS UNDERESTIMATES UTILITIES VALUATION VARIABLE INPUTS ENVIRONMENTAL ASPECTS OF POLLUTION ELECTRIC POWER SULFUR DIOXIDE POLLUTANTS EMISSIONS FUELS LABOR FACTORS OF PRODUCTION PERMITS GREENHOUSE GAS EMISSIONS Considine, Timothy J. Larson, Donald F. The Environment as a Factor of Production
relation	Policy Research Working Paper;No.3271
description	The authors develop a model of environmental resource use in production with an empirical analysis of how electric power companies consume and bank sulfur dioxide pollution permits. The model considers emissions, fuels, and labor as variable inputs with quasi-fixed inputs of permits and capital. Incorporating information from permit markets allows the authors to distinguish between user costs and asset shadow values. Their findings indicate that firms are holding stocks of pollution permits for reasons other than short-term cost savings. The results also reveal substantial substitution possibilities between emissions, permits stocks, and other factors of production. The authors speculate that anticipated secondary markets for carbon-offset inventories related to the flexibility mechanisms of the Kyoto Protocol will have similar effects for greenhouse-gas emitting firms.
format	Publications & Research :: Policy Research Working Paper
author	Considine, Timothy J. Larson, Donald F.
author_facet	Considine, Timothy J. Larson, Donald F.
author_sort	Considine, Timothy J.
title	The Environment as a Factor of Production
title_short	The Environment as a Factor of Production
title_full	The Environment as a Factor of Production
title_fullStr	The Environment as a Factor of Production
title_full_unstemmed	The Environment as a Factor of Production
title_sort	environment as a factor of production
publisher	World Bank, Washington, D.C.
publishDate	2013
url	http://documents.worldbank.org/curated/en/2004/04/4125151/environment-factor-production http://hdl.handle.net/10986/14112
_version_	1764430222687469568

The Environment as a Factor of Production

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