Estimating Pollution Abatement Costs: A Comparison of 'Stated' and 'Revealed' Approaches

70 Pages Posted: 4 Feb 2003

See all articles by Rolf Färe

Rolf Färe

Oregon State University - Department of Economics

Shawna Grosskopf

Oregon State University

Carl A. Pasurka

Environmental Protection Agency (EPA)

Date Written: December 17, 2003

Abstract

Surveys have been the principal method used to estimate costs associated with environmental regulations in the United States. Although surveys have been widely used, there are concerns about their accuracy. In order to investigate the accuracy of survey estimates of pollution abatement costs, a joint production model is specified and data from electric power plants in the United States for 1994 and 1995 are used to estimate pollution abatement costs incurred by these plants. The estimates of pollution abatement costs generated by the joint production model are then compared with survey estimates of pollution abatement costs incurred by power plants.

Keywords: pollution abatement costs, surveys, joint production, directional distance function

JEL Classification: Q28

Suggested Citation

Färe, Rolf and Grosskopf, Shawna and Pasurka, Carl A., Estimating Pollution Abatement Costs: A Comparison of 'Stated' and 'Revealed' Approaches (December 17, 2003). Available at SSRN: https://ssrn.com/abstract=358700 or http://dx.doi.org/10.2139/ssrn.358700

Rolf Färe

Oregon State University - Department of Economics ( email )

303 Ballard Extension Hall
Corvallis, OR 97331
United States
541-737-8184 (Phone)
541-737-5917 (Fax)

Shawna Grosskopf

Oregon State University ( email )

303 Ballard Extension Hall
Corvallis, OR 97331
United States
541-737-8184 (Phone)

Carl A. Pasurka (Contact Author)

Environmental Protection Agency (EPA) ( email )

William Jefferson Clinton Building West
1200 Pennsylvania Ave., N.W.
Washington, DC 20460
United States
202-566-2275 (Phone)

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