Joint Production of Good and Bad Outputs with a Network Application

This article surveys the literature on the joint production of good and bad outputs. Recently, material balance has arisen as an issue in this literature, as a restriction on the technology, which also we address. We use our preferred specification of joint production technology and estimate the efficiency of US electric utilities in a network setting. This network allows one to specify two subtechnologies, one of which is an abatement technology.

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