Dutch glasshouse firms are facing the introduction of a system of tradable CO2 emission quota. Also, the firms will be faced with a cut of CO2 emissions of approximately 5% by the year 2010. This paper employs a nonparametric method for modeling tradable CO2 emissions of Dutch glasshouse firms. The method is capable of generating shifts in CO2 emissions across the sample of firms. Also, changes in volumes of outputs produced and inputs used are computed. Results show that firms using a conventional heating technology will be net purchasers of CO2 emissions, whereas firms using more advanced heating technologies will sell part of their emission quota.


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