Pollution-Generating Technologies and Disposability Assumptions

This paper exams the concept of Pollution-generating Technologies (PgT). The main goal of this methodological contribution is to reveal any PgT in production processes compatible with a minimal set of assumptions. We model PgT using a congestion approach of the output set relaxing strong disposability assumption. To this end, we define the B-disposal assumption, that is a kind of limited strong disposability. The B-disposal assumption reflects cost disposability assumption with respect to the undesirable outputs. This disposability assumption leads to a new duality result between an output distance function and the revenue function with possibly negative shadow prices. A sample of 13 representative French airports is considered over the period 2007-2011, in order to implement the new B-disposal assumption on convex non-parametric technologies