Results 1 - 10
of
12
Sulfur Dioxide Control by Electric Utilities: What Are the Gains from Trade
- Journal of Political Economy
, 2000
"... No portion of this paper may be reproduced without permission of the authors. Discussion papers are research materials circulated by their authors for purposes of information and discussion. They have not undergone formal peer review or the editorial treatment accorded RFF books and other publicatio ..."
Abstract
-
Cited by 115 (5 self)
- Add to MetaCart
No portion of this paper may be reproduced without permission of the authors. Discussion papers are research materials circulated by their authors for purposes of information and discussion. They have not undergone formal peer review or the editorial treatment accorded RFF books and other publications. SULFUR DIOXIDE CONTROL BY ELECTRIC UTILITIES: WHAT ARE THE GAINS FROM TRADE? Title IV of the 1990 Clean Air Act Amendments (CAAA) established a market for transferable sulfur dioxide (SO 2) emission allowances among electric utilities. This market offers firms facing high marginal abatement costs the opportunity to purchase the right to emit SO2 from firms with lower costs, and is expected to yield cost savings compared to a command and control approach to environmental regulation. This paper uses econometrically estimated marginal abatement cost functions for power plants affected by Title IV of the CAAA to evaluate the performance of the SO2 allowance market. Specifically, we investigate whether the much-heralded fall in the cost of abating SO2, compared to original estimates, can be attributed to
Cap-and-Trade System to Address Global Climate Change, Discussion Paper 2007-13, The Brookings Institution, October 2007. � Climate-Change Policies Can Treat Poor Families Fairly and Be Fiscally Responsible
- on Budget and Policy Priorities. � Energy Information Administration (EIA), Department of Energy, EIA Brochures on Greenhouse Gases, Climate Change and Energy
"... author. REGULATORY POLICY PROGRAM The Regulatory Policy Program at the Mossavar-Rahmani Center for Business and Government provides an environment in which to develop and test leading ideas on regulation and regulatory institutions. RPP’s research aims to improve the global society and economy by un ..."
Abstract
-
Cited by 39 (6 self)
- Add to MetaCart
author. REGULATORY POLICY PROGRAM The Regulatory Policy Program at the Mossavar-Rahmani Center for Business and Government provides an environment in which to develop and test leading ideas on regulation and regulatory institutions. RPP’s research aims to improve the global society and economy by understanding the impacts of regulation and creating better decisions about the design and implementation of regulatory strategies around the world. RPP’s efforts are organized around the following three core areas: regulation, markets, and deregulation; regulatory instruments; and regulatory institutions and policymaking.
The Environment as a Factor of Production
- Journal of Environmental Economics and Management
, 2006
"... This paper develops a model of environmental resource use in production with an empirical analysis of how electric power companies consume and bank sulfur dioxide pollution permits. The model considers emissions, fuels, and labor as variable inputs with quasi-fixed inputs of permits and capital. Inc ..."
Abstract
-
Cited by 26 (4 self)
- Add to MetaCart
This paper develops a model of environmental resource use in production with an empirical analysis of how electric power companies consume and bank sulfur dioxide pollution permits. The model considers emissions, fuels, and labor as variable inputs with quasi-fixed inputs of permits and capital. Incorporating information from permit markets allows us to distinguish between user costs and asset shadow values. Our findings indicate that firms are holding stocks of pollution permits for reasons other than short-term cost savings. The results also reveal substantial substitution possibilities between emissions, permits stocks, and other factors of production. We speculate that anticipated secondary markets for carbon-offset inventories related to the flexibility mechanisms of the Kyoto Protocol will have similar effects for greenhouse-gas emitting firms.
The Role of Emission Trading in Domestic Climate Policy
- The Energy Journal
, 2009
"... This paper focuses on two specific issues in the design of a domestic cap and trade program for GHGs – whether the cap should be located upstream or downstream, and whether trading alone will suffice to achieve the desired reduction in GHGs or will need to be supplemented with additional regulatory ..."
Abstract
-
Cited by 7 (0 self)
- Add to MetaCart
This paper focuses on two specific issues in the design of a domestic cap and trade program for GHGs – whether the cap should be located upstream or downstream, and whether trading alone will suffice to achieve the desired reduction in GHGs or will need to be supplemented with additional regulatory measures. The paper argues for a downstream cap accompanied by measures such as a renewable portfolio standard, efficiency standards for vehicles, appliances and buildings, and a low carbon fuel standard. For this argument, it is necessary to address both the theory and the empirical evidence of emission trading. After reviewing the theory, the paper examines the actual experience in the U.S. with emission trading for SO 2, to see whether the assumptions used in the theory actually applied in practice. What actually happened deviated in several important respects from what was supposed to happen according to the conventional theorizing. The design of a cap and trade program for GHG is then discussed, first considering the similarities between the past regulation of air pollutants and the challenge posed by GHGs, and then making the case for a downstream cap and complementary policies. 1.
When Does Regulation Distort Costs? Lessons from Fuel Procurement in US Electricity Generation
, 2012
"... Under what conditions does cost-of-service regulation lead rms to distort costs? This paper analyzes changes in fuel procurement practices by coal- and natural gas- red electricity generating plants in the United States following state-level legislation that ended cost-of-service regulation among in ..."
Abstract
-
Cited by 2 (0 self)
- Add to MetaCart
Under what conditions does cost-of-service regulation lead rms to distort costs? This paper analyzes changes in fuel procurement practices by coal- and natural gas- red electricity generating plants in the United States following state-level legislation that ended cost-of-service regulation among investor-owned electric utilities in the late 1990s. I construct a detailed dataset that links con dential, shipment-level data on the price of virtually all of the fuel delivered to coal- and gas- red electricity plants in the United States from 1990-2009, with plant-level data on operations and regulatory status. Using a matched di erence-in-di erence estimation strategy to account for confounding shipping costs, I nd the price of coal drops by 12 % at deregulated plants relative to matched plants that were not subject to any regulatory change, whereas there was no relative drop in the price of gas. Deregulated plants disproportionately switch to burning low-sulfur coal rather than install capital-intensive abatement equipment to comply with environmental regulations, and expand imports from out of state by 25 % if they were initially burning in-state coal. I show how these results lend support to theories of asymmetric information between generators and regulators, regulatory capture, and
AN EX POST EVALUATION OF THE U.S. ACID RAIN PROGRAM
, 2014
"... Emissions trading programs have been recommended by economists and im-plemented by policy makers because they are expected to keep compliance costs low; but, studies on actual savings are limited. This paper is the first to conduct a comprehensive ex post analysis of the cost savings from the Acid R ..."
Abstract
- Add to MetaCart
Emissions trading programs have been recommended by economists and im-plemented by policy makers because they are expected to keep compliance costs low; but, studies on actual savings are limited. This paper is the first to conduct a comprehensive ex post analysis of the cost savings from the Acid Rain Program (ARP), the largest emissions trading program to be implemented in the U.S. In Chapter 2, I provide a brief overview of the Acid Rain Program. I then discuss other policies that are relevant to evaluating the ARP including the New Source Performance Standard and local emission standards. I conclude the chapter by analyzing the determinants of local emission standards and arguing that it is safe to treat these standards as exogenous. In Chapter 3 I illustrate the cost savings from a cap-and-trade system such as the ARP, and discuss factors affecting the potential gains from trade and the determinants. I then estimate a discrete choice model of coal procurement and scrubber installation to recover structural parameters of compliance cost functions at the generating unit level. Using the model I predict compliance choices under a uniform emission standard that yields the same aggregate emissions as the ARP. In Chapter 4, I estimate cost savings under the ARP to be about 265-380 million (1995 USD) per year. The numbers are much smaller than in previous literature (Carlson et al., 2000; Ellerman et al., 2000). I propose that lower transport costs reduced cost heterogeneity across generating units, and that improvements in scrubbing technology and state policies may have also contributed to a decrease in cost savings.
Essays on the Allocation of Scarce Resources Among Competing Ends
, 2013
"... (Article begins on next page) The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters. Citation Cicala, Steven Joseph. 2013. Essays on the Allocation of ScarceResources among Competing Ends. Doctoral dissertation, ..."
Abstract
- Add to MetaCart
(Article begins on next page) The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters. Citation Cicala, Steven Joseph. 2013. Essays on the Allocation of ScarceResources among Competing Ends. Doctoral dissertation,
Contract renegotiation and rent re-distribution: Who gets raked over the coals?
"... a b s t r a c t Policy shocks affect the rent distribution in long-term contracts, which can lead to such contracts being renegotiated. We seek an understanding of what aspects of contract design, in the face of a substantial policy shock, affect the propensity to renegotiate. We test our hypothese ..."
Abstract
- Add to MetaCart
(Show Context)
a b s t r a c t Policy shocks affect the rent distribution in long-term contracts, which can lead to such contracts being renegotiated. We seek an understanding of what aspects of contract design, in the face of a substantial policy shock, affect the propensity to renegotiate. We test our hypotheses using data on U.S. coal contracts after the policy shock of the 1990 Clean Air Act Amendments. Contracts are divided into two categories, those that were renegotiated following the shock and those that were not. Characteristics of the contract are used to explain whether or not the contract was ultimately renegotiated. Results provide guidance on rent re-distribution and contract renegotiation more generally and are applicable to contemporary policy issues such as climate change legislation.
The SO2 Cap-and-Trade Program for Power Plants in the United
, 2003
"... portion of this paper may be reproduced without permission of the authors. Discussion papers are research materials circulated by their authors for purposes of information and discussion. They have not necessarily undergone formal peer review or editorial treatment. ..."
Abstract
- Add to MetaCart
portion of this paper may be reproduced without permission of the authors. Discussion papers are research materials circulated by their authors for purposes of information and discussion. They have not necessarily undergone formal peer review or editorial treatment.
treatment. Innovation Under the Tradable Sulfur Dioxide Emission Permits Program in the U.S. Electricity Sector
, 2000
"... the authors. Discussion papers are research materials circulated by their authors for purposes of information and discussion. They have not necessarily undergone formal peer review or editorial ..."
Abstract
- Add to MetaCart
(Show Context)
the authors. Discussion papers are research materials circulated by their authors for purposes of information and discussion. They have not necessarily undergone formal peer review or editorial
