Non-Parametric Modelling of CO

Dutch glasshouse firms are facing the introduction of a system of tradable CO₂ emission quotas. This paper employs a non-parametric method for modelling tradable CO₂ emissions of Dutch glasshouse firms. The method is capable of generating shifts in CO₂ emissions across the sample of firms. Moreover, changes in volumes of outputs produced and inputs used are computed. Results show that firms using a conventional heating technology will be net purchasers of CO₂ emissions, whereas firms using more advanced heating technologies will sell part of their emission quota. Copyright (c) 2008 The Authors. Journal compilation (c) 2008 The Agricultural Economics Society.