This paper measures resource use efficiency of electricity generating plants in the United States under the SO2 trading regime. Resource use efficiency is defined as the product of technical efficiency and environmental efficiency, where the latter is the ratio of good output (electricity) to...

We examine the productivity and profitability changes in the US electric generating plants during the SO2 trading regime. Input distance function is used to compute the cumulative Malmquist productivity and Fisher productivity indexes. By exploiting the duality between cost and input distance...

This study estimates allowance price induced technological progress using directional output distance function for a panel data of 80 plants of US fossil fuelled electricity generating industry over the period 1995 to 2001. This application yields several important insights. First, we observe...