Efficiency, Shadow Pricing and Regime Switching in Multi‐Ware Technologies: Evidence From Regulated Livestock Farms
构建了一个多仓库技术框架，分析受监管畜牧场中生产与污染治理的效率权衡，并估计影子价格和体制转换行为，为评估环境与经济绩效提供政策工具。
ABSTRACT We develop a framework for regulated production systems where output generation and pollution abatement impose competing technological demands. Using a multi‐ware technology, we model the production set as the intersection of two input requirement frontiers, one for production and one for abatement, each reflecting distinct trade‐offs. We characterise the efficient set using gaps in efficiency distances and recover shadow prices for smooth and non‐smooth frontiers, clarifying how subdifferentials govern shadow prices at switching points. To address unobserved heterogeneity in technological orientation, we estimate a full‐information maximum likelihood model with endogenous regime‐switching. Applying the framework to Chinese livestock farms, we recover regime‐specific land costs, identify drivers of regime assignment and quantify inefficiency using multi‐ware distances. Results reveal sharp asymmetries in spatial burdens between production and abatement, and systematic switching behaviour driven by inputs and weather. Our framework offers a widely applicable, policy‐relevant tool for evaluating environmental and economic performance.