Abstract

This paper aims to define pollution‐adjusted Malmquist and Luenberger productivity measures through generalized pollution‐adjusted production technology. This axiomatic framework is fairly weak and does not require any convexity property for the production technology. Hence, a general context to analyse and decompose pollution‐adjusted productivity change is introduced. Decomposing productivity measures allows to determine the sources of productivity variation and is of interest to define recommendations for decision makers.

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