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

Endnotes

1 For a detailed description of these properties refer to Fare (1988).

2 The advantage of using the deterministic parametric method for estimating
the output distance function is that it is easy to use and allows computation
of a large number of parameters even with a small number of observations
(Hetemaki, 1996).

3 The thermal plants included in the empirical model are Kolaghat Thermal
Power Station (KTPS) under the WBPDCL, Bokaro TPS ‘A’, Bokaro TPS
‘B’, Chandrapura TPS, Durgapur TPS, Mejia TPS under the DVC and
Titagarh TPS, Southern TPS, and Budge-Budge TPS, under the CESC.

4 In India most of the coal that is consumed in the thermal plants is of a lower
grade and has low calorific value in comparison to the coal consumed by
the plants under consideration. In order to capture the grade differential
while estimating CO2 emissions from the burning of coal the emission
factors provided in the IPCC reference manual are adjusted accordingly.

5 A dummy variable assuming values D = 1 for dirty plants and D = 0 for plants
which are cleaner is incorporated in Model-2.

6 See among others studies by Fare et., al. (1993), Hetemaki (1994; 1996);
Althin (1994); Swinton (1998); and Yaisawarng and Klein (1994).

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