This study aims to estimate the external costs of silicon production so as to provide information for making policies on the sustainable exploitation of solar energy. In particular, the study first theoretically analyzed the impact of industrial pollution on crop production by integrating a damage function with the stochastic frontier analysis (SFA) model followed by an empirical study, and then estimated the external cost of health damage and agricultural loss resulting from industrial pollution from a silicon industry zone in Southwest China.

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An Estimation of the External Cost of Photovoltaic-Oriented Silicon Production in China