Abstract
Production theory offers a mathematical framework for modeling important relationships between production activities and the environment. These include the generation and valuation of production-related environmental effects, environmental contributions to production processes, and production effects of environmental management practices. In this chapter, we review the seminal and recent empirical work in each of these areas. We anchor our review to multi-input/multi-output production processes, as these make up a large share of environmental applications in the field, and their associated models offer the practitioner considerable flexibility in terms of specification and estimation.
We would like to thank Rolf Färe and Shawna Grosskopf, as well as our reviewer. This work has greatly benefited from their comments.
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Bostian, M., Lundgren, T. (2022). Production and the Environment. In: Ray, S.C., Chambers, R.G., Kumbhakar, S.C. (eds) Handbook of Production Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-3455-8_38
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