Does regulation stimulate productivity? The effect of air quality policies on the efficiency of US power plants

Rachel Fleishman, Rob Alexander, Stuart Ira Bretschneider, David Popp

Research output: Contribution to journalArticle

35 Scopus citations

Abstract

This research examines the effect of air quality regulations on the productivity of US power plants based on both economic and environmental outputs. Using data envelopment analysis (DEA) to estimate an efficiency measure incorporating both economic and environmental outcomes, we look at changes in efficiency in US power plants over an eleven-year time period (1994-2004) during which several different regulations were implemented for the control of nitrogen oxides (NOx) and sulfur dioxide (SO2). The paper then models how estimated efficiency behaves over time as a function of regulatory changes. Findings suggest mixed effects of regulations on power plant efficiency when pollution abatement and electricity generation are both included as outputs.

Original languageEnglish (US)
Pages (from-to)4574-4582
Number of pages9
JournalEnergy Policy
Volume37
Issue number11
DOIs
StatePublished - Nov 1 2009

Keywords

  • Air pollution
  • Data envelopment analysis
  • Regulation

ASJC Scopus subject areas

  • Energy(all)
  • Management, Monitoring, Policy and Law

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