Joint production, externalities, and the regulation of production networks
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In: Environmental and Resource Economics, Vol. 16, No. 2, 06.2000, p. 229-251.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Joint production, externalities, and the regulation of production networks
AU - Baumgärtner, Stefan
AU - Jöst, Frank
PY - 2000/6
Y1 - 2000/6
N2 - Real production systems are often vertically integrated in thesense that one production process uses the unwanted joint product of another production process as input.This interrelationship links in a non-obvious way the different negative externalities stemming from theproduction processes. An empirical example is the sulphuric acid industry. Our model of a vertically integratedproduction system shows how internalising one currently existing externality may create another externalitywhich has thus far not been existent. We also discuss how environmental policy could deal with this problemwhen regulating integrated production systems.
AB - Real production systems are often vertically integrated in thesense that one production process uses the unwanted joint product of another production process as input.This interrelationship links in a non-obvious way the different negative externalities stemming from theproduction processes. An empirical example is the sulphuric acid industry. Our model of a vertically integratedproduction system shows how internalising one currently existing externality may create another externalitywhich has thus far not been existent. We also discuss how environmental policy could deal with this problemwhen regulating integrated production systems.
KW - Sustainability sciences, Management & Economics
KW - environmental policy
KW - externalities
KW - integrated production systems
KW - joint production
KW - sulphuric acid
KW - Economics
KW - environmental policy
KW - externalities
KW - integrated production systems
KW - joint production
KW - sulphuric acid
UR - http://www.scopus.com/inward/record.url?scp=0343527431&partnerID=8YFLogxK
U2 - 10.1023/A:1008371502845
DO - 10.1023/A:1008371502845
M3 - Journal articles
VL - 16
SP - 229
EP - 251
JO - Environmental and Resource Economics
JF - Environmental and Resource Economics
SN - 0924-6460
IS - 2
ER -