Using a unique plant-level dataset we examine total factor productivity (TFP) growth and its components, related to … regulated due to its historically large contribution to air and water pollution. Our paper contributes to the broader empirical … and enforcement. Our key findings are: (1) prudential regulation limits expansion of plants with high initial pollution …

processes. Pollution modelling must be of a multi-output nature. The most flexible transformation function in outputs and inputs … used in textbooks is too general to make sense in pollution modelling. Specifying bads as if they are inputs, although …