Estimation of Marginal Abatement Costs for Undesirable Outputs in India ’ s Power Generation Sector : An Output Distance Function Approach

  title={Estimation of Marginal Abatement Costs for Undesirable Outputs in India ’ s Power Generation Sector : An Output Distance Function Approach},
  author={Manish Gupta},
Many production activities generate undesirable byproducts in conjunction with the desirable outputs they produce. The present study uses an output distance function approach and its duality with the revenue function to estimate the marginal abatement cost of CO2 emissions from a sample of thermal plants in India. Two sets of exercises have been undertaken. The marginal abatement cost is first estimated without considering the distinction between the clean and the dirty plants (model-1) and… CONTINUE READING


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