TY - JOUR
T1 - Sulfur dioxide allowances
T2 - Trading and technological progress
AU - Kumar, Surender
AU - Managi, Shunsuke
PY - 2010/1/15
Y1 - 2010/1/15
N2 - 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%.
AB - 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%.
KW - Distance function
KW - Environmental policy
KW - Sulfur dioxide allowances trading
KW - Technological progress
UR - http://www.scopus.com/inward/record.url?scp=72149112495&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=72149112495&partnerID=8YFLogxK
U2 - 10.1016/j.ecolecon.2009.09.013
DO - 10.1016/j.ecolecon.2009.09.013
M3 - Article
AN - SCOPUS:72149112495
VL - 69
SP - 623
EP - 631
JO - Ecological Economics
JF - Ecological Economics
SN - 0921-8009
IS - 3
ER -