Environmental misallocation in the copper industry

Juan A. Correa, Marcos Gómez, Andrés Luengo, Francisco Parro

Research output: Contribution to journalArticlepeer-review

Abstract

We use mine-level data from the international copper industry to quantify environmental misallocation. We define this concept as the ratio between the observed carbon dioxide (CO2) emissions in the industry and the level reached by a social planner that allocates the current aggregate output across mines so as to minimize emissions, conditional on some well-defined extraction rules. We find that CO2 emissions from the world copper industry are reduced by 47% under the planner's allocation. We also provide evidence suggesting that a cleaner environment is not necessarily tied to lower levels of productive efficiency.

Original languageEnglish (US)
Article number102003
JournalResources Policy
Volume71
DOIs
StatePublished - Jun 2021

All Science Journal Classification (ASJC) codes

  • Sociology and Political Science
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law
  • Law

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