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On the Implications of Technological Innovation for Environmental Policy AgEcon
Parry, Ian W.H..
This paper draws on a number of recent studies to shed light on several policy issues raised by the impact of environmental policies on technological innovation. First, to what extent does induced innovation raise the overall net benefits to society from environmental policies? Second, how does induced innovation affect the appropriate choice among alternative environmental policy instruments? Third, how does it affect the optimal stringency of environmental regulations? Fourth, should environmental policies be supplemented with additional policies to promote innovation, such as research contracts or prizes for new technologies?
Tipo: Working or Discussion Paper Palavras-chave: Environment; Technological innovation; Pollution control; Instrument choice; Environmental Economics and Policy; Q28; O38.
Ano: 2001 URL: http://purl.umn.edu/10797
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Regulating Stock Externalities Under Uncertainty AgEcon
Newell, Richard G.; Pizer, William A..
Using a simple analytical model incorporating benefits of a stock, costs of adjusting the stock, and uncertainty in costs, we uncover several important principles governing the choice of price-based policies (e.g., taxes) relative to quantity-based policies (e.g., tradable permits) for controlling stock externalities. Applied to the problem of greenhouse gases and climate change, we find that a price-based instrument generates several times the expected net benefits of a quantity instrument. As in Weitzman (1974), the relative slopes of the marginal benefits and costs of controlling the externality continue to be critical determinants of the efficiency of prices relative to quantities, with flatter marginal benefits and steeper marginal costs favoring...
Tipo: Working or Discussion Paper Palavras-chave: Stock; Externality; Regulation; Policy; Uncertainty; Price; Quantity; Tax; Tradable permit; Pollution; Climate change; Greenhouse Gas; Instrument choice; Risk and Uncertainty; Q28; D81; C61.
Ano: 2000 URL: http://purl.umn.edu/10471
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Heterogeneity in Costs and Second-Best Policies for Environmental Protection AgEcon
Burtraw, Dallas; Cannon, Matthew.
This paper investigates heterogeneity in pollution abatement costs using a computable general equilibrium framework. Previous literature using aggregated data has found that "grandfathered" tradable permits are dominated by other instruments including emission taxes, performance standards, and technology mandates because of interactions with pre-existing taxes. However, when the underlying costs of abatement are heterogeneous, a disaggregate representation of costs yields qualitatively different findings. In a disaggregate model of NOX abatement in the United States, the relative performance of tradable permits improves significantly and out-performs command and control approaches over a wide range of emission reductions.
Tipo: Working or Discussion Paper Palavras-chave: Cost-effectiveness analysis; General equilibrium; Environmental policy; Instrument choice; Second-best regulation; Environmental Economics and Policy; D58; H21; L51.
Ano: 2000 URL: http://purl.umn.edu/10875
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