This paper develops a methodology for isolating the important features of large scale, process analysis models for production activities. These models were designed to estimate the economic costs of environmental regulations. Econometric estimates of neoclassical cost functions based on repeated solutions to nine such models were used to discriminate each process model's inherent features. The findings include sensitivity analyses of the effects of the specification of the cost functions and of the experimental design used to derive the solutions.
ASJC Scopus subject areas
- Environmental Science(all)
- Earth and Planetary Sciences(all)