Estimation of marginal abatement costs for undesirable outputs in India's power generation sector: An output distance function approach.



( xix) KK max [ln D0 (xk , yk )-ln1]
k=1

where k = (1, 2,......, K) indexes individual observation. lnD0 (x, y)

has an explicit functional form as given in equation (xvi). We assume that
the first
i outputs are desirable while the remaining (M - i) outputs are
undesirable or bad outputs. Our objective function minimises the sum of
deviations of individual observations from the frontier of the technology.
We know that the distance function takes a value less than equal to
unity, therefore the natural logarithm of it, i.e.,
lnD0(xk , yk) will be less
than, or equal to zero and the expression
[ln D0 (xk , yk)-ln1] , which
denotes the deviation from the frontier for observation
k will be less than
or equal to zero.

Our objective is to maximise the expression in equation (xix)
subject to the following constraints:

(xx)KK lnD0(xk, yk)0, k=1,......,K

This constraint restricts the individual observations to be either on or
below the frontier of technology i.e., there are no outputs outside the
frontier of technology, given the set of inputs.

Desirable outputs are assumed to be strongly disposable, which
implies that the output distance function should be increasing in
desirable outputs. The strong disposability condition can be represented
by the following inequality:

(xxi)......d lnD0(x.,y )0,  m = 1,......,i;  k = 1,......,K

ln ykm ’        ’    ”        ’    ’

The constraint above ensures that the shadow prices of the desirable
outputs are non-negative. In addition it is assumed that undesirable
outputs are weakly disposable. This weak disposability is always
satisfied for the output distance function specified as the translog form
when linear homogeneity condition represented by equation
(xxii) and
the symmetry conditions represented by equation
(xxiii) are being
imposed.

15



More intriguing information

1. The name is absent
2. The name is absent
3. The name is absent
4. Non-farm businesses local economic integration level: the case of six Portuguese small and medium-sized Markettowns• - a sector approach
5. Graphical Data Representation in Bankruptcy Analysis
6. The Context of Sense and Sensibility
7. Imputing Dairy Producers' Quota Discount Rate Using the Individual Export Milk Program in Quebec
8. The name is absent
9. PACKAGING: A KEY ELEMENT IN ADDED VALUE
10. Fiscal Reform and Monetary Union in West Africa
11. Real Exchange Rate Misalignment: Prelude to Crisis?
12. From Communication to Presence: Cognition, Emotions and Culture towards the Ultimate Communicative Experience. Festschrift in honor of Luigi Anolli
13. Design and investigation of scalable multicast recursive protocols for wired and wireless ad hoc networks
14. The resources and strategies that 10-11 year old boys use to construct masculinities in the school setting
15. Crime as a Social Cost of Poverty and Inequality: A Review Focusing on Developing Countries
16. The growing importance of risk in financial regulation
17. On the Relation between Robust and Bayesian Decision Making
18. The bank lending channel of monetary policy: identification and estimation using Portuguese micro bank data
19. Ability grouping in the secondary school: attitudes of teachers of practically based subjects
20. THE ANDEAN PRICE BAND SYSTEM: EFFECTS ON PRICES, PROTECTION AND PRODUCER WELFARE