The impact of environmental constraints on productivity improvement and energy efficiency in integrated paper and steel plants
Description: This paper presents a methodology and results for assessing the impact of production and energy efficiency, environmental regulation, and abatement capital expenditure constraints (e.g. capital rationing) on the productivity of energy and pollution intensive sectors. Energy is treated like any other production input when examining evidence of inefficiency. We find that capital rationing and environmental regulations do contribute to productivity and energy efficiency losses, but do not explain all of the production and energy inefficiencies observed in the paper industry. A summary of the energy source of production inefficiency found in the paper industry, is presented.. Each source is derived as the incremental contribution., i.e. the first is constraints on capital, the second in environmental regulation not accounted for by the first, and the final component is production inefficiency that is not accounted for my any of the- environmental analysis. While the methods are very data intensive, they reveal much more that analysis of aggregate data, 1835 since the only plant level data can provide the estimates of inefficiency that this methodology employs.
Creator: Boyd, G. A. & McClelland, J.
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