1. Sulfur dioxide allowances: Trading and technological progress
- Author
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Kumar, Surender and Managi, Shunsuke
- Subjects
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EMISSIONS trading , *SULFUR dioxide mitigation , *SULFUR dioxide & the environment , *TECHNOLOGICAL innovations & the environment , *ELECTRIC power & the environment , *ELECTRIC power production & the environment , *ECONOMICS , *LAW ,CLEAN Air Act Amendments of 1990 (U.S.) - Abstract
The US Clean Air Act Amendments introduce an emissions trading system to regulate SO2 emissions. This study finds that changes in SO2 emissions prices are related to innovations induced by these amendments. We find that electricity-generating plants are able to increase electricity output and reduce emissions of SO2 and NO x from 1995 to 2007 due to the introduction of the allowance trading system. However, compared to the approximate 8% per year of exogenous technological progress, the induced effect is relatively small, and the contribution of the induced effect to overall technological progress is about 1–2%. [Copyright &y& Elsevier]
- Published
- 2010
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