Sulfur dioxide allowances: Trading and technological progress

Surender Kumar, Shunsuke Managi

Research output: Contribution to journalArticlepeer-review

28 Citations (Scopus)

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 NOx 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%.

Original languageEnglish
Pages (from-to)623-631
Number of pages9
JournalEcological Economics
Volume69
Issue number3
DOIs
Publication statusPublished - 2010 Jan 15

Keywords

  • Distance function
  • Environmental policy
  • Sulfur dioxide allowances trading
  • Technological progress

ASJC Scopus subject areas

  • Environmental Science(all)
  • Economics and Econometrics

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