Work detail

Shadow price of Air Pollution Emissions in Czech Energy sector - Estimation from Distance Function

Author: Mgr. Lukáš Rečka
Year: 2011 - summer
Leaders: Mgr. Milan Ščasný PhD.
Work type: Economic Theory
Language: English
Pages: 79
Awards and prizes: M.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good masters diploma thesis.
Abstract: This thesis employs a parametric input distance function that incorporates both desirable and
undesirable outputs to provide a more complete representation of the production technology.
Based on the Shephard (1970) theory of duality, we derive the shadow prices of undesirable
outputs in the Czech energy sector on the data over the period 2002 – 2007. The medians of our
shadow prices estimates are 8374, 1198, 2805, 6051 and 8549 € per ton of PM, SO2, NOx, CO
and VOC, respectively. We decompose shadow prices estimates and test the hypotheses that the
marginal abatement cost decline over time; that marginal abatement cost rice with the declining
emission level; and that marginal abatement cost rice with declining emission rate.
Downloadable: Diploma Thesis of Rečka




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