Sulfur dioxide allowances: Trading and technological progress

Surender Kumar; Shunsuke Managi

doi:10.1016/j.ecolecon.2009.09.013

Sulfur dioxide allowances: Trading and technological progress

Surender Kumar, Shunsuke Managi

Research output: Contribution to journal › Article › peer-review

35 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 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%.

Original language	English
Pages (from-to)	623-631
Number of pages	9
Journal	Ecological Economics
Volume	69
Issue number	3
DOIs	https://doi.org/10.1016/j.ecolecon.2009.09.013
Publication status	Published - Jan 15 2010
Externally published	Yes

All Science Journal Classification (ASJC) codes

Environmental Science(all)
Economics and Econometrics

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10.1016/j.ecolecon.2009.09.013

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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%.

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Sulfur dioxide allowances: Trading and technological progress

Abstract

All Science Journal Classification (ASJC) codes

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