CERE Working Papers, CERE - the Center for Environmental and Resource Economics
Environmental investment and firm performance: A network approach
(), Rolf Färe, Shawna Grosskopf and Tommy Lundgren
Abstract: This study examines the role of investment in
environmental production practices for both environmental performance and
energy efficiency over time. We employ a network DEA approach that links
successive production technologies through intertemporal investment
decisions with a period by period estimation. This allows us to estimate
energy efficiency and environmental performance separately, as well as
productivity change and its associated decompositions into efficiency
change and technology change. Incorporating a network model also allows us
to account for both short-term environmental management practices and
long-term environmental investments in each of our productivity measures.
We apply this framework to a panel of detailed plant-level production data
for Swedish manufacturing firms covering the years 2002 - 2008.
Keywords: Energy Efficiency; Environmental Performance; Network DEA; Malmquist Index; Investment; (follow links to similar papers)
JEL-Codes: D22; D24; M14; (follow links to similar papers)
42 pages, September 19, 2015
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