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Author:Asche, F.
Roll, K.H.
Tveteras, R.
Title:Economic inefficiency and environmental impact: An application to aquaculture production
Journal:Journal of Environmental Economics and Management
2009 : JUL, VOL. 58:1, p. 93-105
Index terms:environmental economics
Scandinavia
Nordic countries
Norway
fish farming
productivity
Freeterms:inefficiency
aquaculture
Language:eng
Abstract:In industries characterized by frequent innovation and high productivity growth, substantial variation in produced quantity and input use may turn up, leading to increased costs. An effect is that inefficiency (hereafter as: ineff-y.) can impede environmental impacts. This effect is especially important in the case of environmentally damaging inputs being overused. Moreover, such ineff-y. can also increase the environmental impact of the firm's activity. For environmental regulators, this makes the degree of ineff-y. in an industry an issue.
In the paper, technical and allocative efficiency is estimated for a sample of Norwegian salmon farmers. It is shown that both technical and allocative ineff-y. on average are significant in explaining the level and variation in farm costs, and that the main environmental impact due to ineff-y. from the Norwegian salmon aquaculture industry originates from ineff-y. of technical kind.
SCIMA record nr: 274960
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