Decomposing electric power plant emissions within a joint production framework

This study calculates the relative importance of factors associated with changes in NOx and SO2 emissions by coal-fired electric power plants between 1987 and 1995 using distance functions to model the joint production of good and bad outputs. This new decomposition model calculates changes in emissions (the bad outputs) associated with changes in technical efficiency, technical change, growth of fuel and non-fuel inputs, and changes in the mix of good and bad outputs. This study finds that declining SO2 emissions are primarily associated with changes in the output mix, while declining NOx emissions are associated with declining fuel consumption and changes in the output mix.