Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
CERE - the Center for Environmental and Resource Economics CERE Working Papers, CERE - the Center for Environmental and Resource Economics

No 2016:3:
Time substitution for environmental performance: The case of Sweden manufacturing

Moriah Bostian (), Rolf Färe, Shawna Grosskopf, Tommy Lundgren () and William L. Weber

Abstract: We apply recent advances in time substitution modeling to examine the environmental performance of firms in Sweden’s pulp and paper industry for the years 2002 - 2008. Our data allow us to estimate the optimal reallocation of environmental investments, expenditures and energy use to simultaneously maximize production output and minimize emissions reductions in the years immediately before and after the implementation of the European Union Emissions Trading Scheme. We find some evidence of overall productivity decline when considering both emissions and output objectives, due primarily to technological decline, and that cumulative dynamic inefficiency outweighs static inefficiency. A comparison of optimal investment time paths to observed investment levels indicates that firms could have improved their performance by reallocating environmental investments to early periods and production-oriented investment to later periods.

Keywords: Time Substitution; Dynamic Efficiency; Environmental Performance; Environmental Investment; DEA; (follow links to similar papers)

JEL-Codes: D22; D24; M14; Q40; Q41; (follow links to similar papers)

29 pages, February 22, 2016

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

CERE_WP2016-3.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Mona Bonta Bergman ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:slucer:2016_003 This page was generated on 2016-03-07 14:26:26