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Enterprise Cost Function Model Considering Environmental Governance Cost and Its Application
Author(s): 
Pages: 139-156
Year: Issue:  11
Journal: The Journal of Quantitative & Technical Economics

Keyword:  Cost FunctionEnvironmental GovernanceEconomies of ScaleEcological Civilization;
Abstract: Research Objectives: Analyzing the environmental governance costs of industrial pollutants in the enterprise cost function model and measure the green economies of scale for enterprises that includes environmental governance costs. Research Methods: This paper builds an enterprise cost function model that includes industrial pollutants and environmental governance costs, and uses the data of Chinese manufacturing companies from 1998 to 2008 to measure the green economies of scale for enterprises and cost elasticity of environmental governance. Research Findings: It is found that Chinese manufacturing enterprises are still in the "green scale economy" stage, but their green economies of scale and the cost elasticity of environmental governance will be heterogeneous due to the characteristics of enterprise property rights and pollution emission intensity of industry. Research Innovations: This paper introduces the environmental governance cost into the framework of enterprise production theory and cost function, and studies the problem of "green scale economy" at the enterprise level. Research Value: It is helpful to the promotion and improvement of cost function in the fields of environmental governance, enterprise scale economy and policy effect evaluation. It is also conducive to the coupling of industrial products and industrial pollution, the benefits of economies of scale and environmental governance costs, and the overall promotion of economic construction and ecological civilization construction.
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