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

Rachel Fleishman; Rob Alexander; Stuart Bretschneider; David Popp

doi:10.1016/j.enpol.2009.06.012

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

Rachel Fleishman, Rob Alexander, Stuart Bretschneider, David Popp

Department of Public Administration

Research output: Contribution to journal › Article › peer-review

53 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 (NO_x) 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 language	English (US)
Pages (from-to)	4574-4582
Number of pages	9
Journal	Energy Policy
Volume	37
Issue number	11
DOIs	https://doi.org/10.1016/j.enpol.2009.06.012
State	Published - Nov 2009

Keywords

Air pollution
Data envelopment analysis
Regulation

ASJC Scopus subject areas

General Energy
Management, Monitoring, Policy and Law

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10.1016/j.enpol.2009.06.012

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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.",

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AB - 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.

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

Abstract

Keywords

ASJC Scopus subject areas

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