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Early Emissions Reduction Programs: An Application to CO2 Policy AgEcon
Parry, Ian W.H.; Toman, Michael.
In the wake of the December 1997 Kyoto Protocol, which, if implemented, would oblige the United States and other industrialized countries to reduce greenhouse gases (GHGs) by 2008-2012, a number of proposals have been offered to increase the incentives for reducing emissions over the nearer term. The existence of an interim period between setting and implementing environmental goals is ubiquitous in environmental policymaking. The existence of this interim period gives rise to several potential rationales for early emissions reductions. In this paper we use a series of simple models and numerical illustrations to analyze some aspects of the performance of early emissions reduction programs in the case of GHGs. We show that there is a compelling economic...
Tipo: Working or Discussion Paper Palavras-chave: Early reduction credits; Carbon emissions; Welfare impacts; Permit banking; Cap-and-trade; Environmental Economics and Policy; Q28; H23; Q48.
Ano: 2000 URL: http://purl.umn.edu/10791
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Instrument Choice for Environmental Protection When Technological Innovation Is Endogenous AgEcon
Fischer, Carolyn; Parry, Ian W.H.; Pizer, William A..
This paper presents an analytical and numerical comparison of the welfare impacts of alternative instruments for environmental protection in the presence of endogenous technological innovation. We analyze emissions taxes and both auctioned and free (grandfathered) emissions permits. We find that under different sets of circumstances each of the three policies may induce a significantly higher welfare gain than the other two policies. In particular, the relative ranking of policy instruments can crucially depend on the ability of adopting firms to imitate the innovation, the costs of innovation, the slope and level of the marginal environmental benefit function, and the number of firms producing emissions. Moreover, although in theory the welfare impacts of...
Tipo: Working or Discussion Paper Palavras-chave: Technological innovation; Externalities; Environmental policies; Welfare impacts; Environmental Economics and Policy; Q28; O38; H23.
Ano: 1998 URL: http://purl.umn.edu/10812
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Using Double-Log Imperfect Import Substitutes Model to Estimate Compensated Elasticities and Welfare Impacts AgEcon
Musyoka, M.P..
Decisions on the effects of safeguard mechanisms have been more on theoretical grounds often due to lack of precise estimation of elasticities that can be used to calibrate welfare effects. Alston et.al., (2002) demonstrate that the double logarithmic demand models can be augmented by Slutsky equation to create compensated demand equations which, when estimated result into precise compensates elasticities important for welfare analysis. This study demonstrates a similar adjustment on a dynamic double log Imperfect Import substitutes model to allow for estimation of compensated and uncompensated elasticities. Elasticities from three estimators OLS, SURE and IV indicate that imported wheat, maize and rice are normal commodities in Kenya. The uncompensated...
Tipo: Journal Article Palavras-chave: Safeguard mechanism; Imperfect import substitutes; Welfare impacts; Wheat; Kenya; Research Methods/ Statistical Methods; Q17; Q18.
Ano: 2010 URL: http://purl.umn.edu/95774
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