Publication Type:

Journal Article


Journal of environmental management, elsevier, Volume 79, Issue 1, p.1-9 (2006)



Environmental efficiency, Malmquist productivity index, Shadow prices of pollutants, Win–win opportunities


In this paper the input distance function is estimated for the Indian Sugar industry under alternative assumptions of weak and strong disposability of bad outputs. The estimated distance function is used to make the estimates of environmental efficiency, Malmquist productivity index and shadow prices of pollutants. The technical efficiency measure estimated under the assumption of weak disposability of bad outputs is utilized to test the Porter hypothesis. Marginal costs of pollution abatement functions are estimated for different pollutants of water. Pollutant specific taxes are computed using the tax-standards method.

Cite this Research Publication

Maddipati Narsimha Murty, Kumar, S., and Paul, M., “Environmental regulation, productive efficiency and cost of pollution abatement: A case study of the sugar industry in India”, Journal of environmental management, vol. 79, no. 1, pp. 1-9, 2006.