Download or read book Environmental Regulation by Prices and Quantities written by Peter Heindl and published by . This book was released on 2012 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Costs and Benefits of Environmental Regulation written by Imad A. Moosa and published by Edward Elgar Publishing. This book was released on 2014-11-28 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: øThe authors present an extensive survey of the empirical evidence on the determinants of environmental performance as well as the effects of environmental regulation on the costs of production, plant location, firm-level productivity, stock prices and

Download or read book Prices Vs Quantities written by Erin Mansur and published by . This book was released on 2007 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a market subject to environmental regulation, a firm's strategic behavior affects the production and emissions decisions of all firms. If firms are regulated by a Pigouvian tax, changing emissions will not affect the marginal cost of polluting. However, under a tradable permits system, the polluters' decisions affect the permit price. This paper shows that this feedback effect may increase a strategic firm's output. Relative to a tax, tradable permits improve welfare in a market with imperfect competition. As an application, I model strategic and competitive behavior of wholesalers in the Pennsylvania, New Jersey, and Maryland electricity market. Simulations suggest that exercising market power decreased local pollution by approximately nine percent, and therefore, substantially reduced the price of the region's pollution permits. Furthermore, I find that had regulators opted to use a tax instead of permits, the deadweight loss from imperfect competition would have been approximately seven percent greater.

Download or read book Price Based Vs Quantity Based Environmental Regulation Under Knightian Uncertainty written by John Stranlund and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conventional wisdom among environmental economists is that the relative slopes of the marginal social benefit and marginal social cost functions determine whether a price-based or quantity-based environmental regulation leads to higher expected social welfare. We revisit the choice between price-based vs. quantity-based environmental regulation under Knightian uncertainty; that is, when uncertainty cannot be modeled with known probability distributions. Under these circumstances, the policy objective cannot be to maximize the expected net benefits of emissions control. Instead, we evaluate an emissions tax and an aggregate abatement standard in terms of maximizing the range of uncertainty under which the welfare loss from error in the estimates of the marginal benefits and costs of emissions control can be limited. The main result of our work is that the same criterion involving the relative slopes of the marginal benefit and cost functions determines whether price-based or quantity-based control is more robust to unstructured uncertainty. Hence, not only does the relative slopes criterion lead to the policy that maximizes the expected net benefits of control under structured uncertainty, it also leads to the policy that maximizes robustness to unstructured uncertainty.

Download or read book Prices Vs Quantities at the Inter country Level written by Hannes Moritz Rohling and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Moving to Markets in Environmental Regulation written by Jody Freeman and published by Oxford University Press. This book was released on 2006-11-30 with total page 501 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the last decade, market-based incentives have become the regulatory tool of choice when trying to solve difficult environmental problems. Evidence of their dominance can be seen in recent proposals for addressing global warming (through an emissions trading scheme in the Kyoto Protocol) and for amending the Clean Air Act (to add a new emissions trading systems for smog precursors and mercury--the Bush administration's "Clear Skies" program). They are widely viewed as more efficient than traditional command and control regulation. This collection of essays takes a critical look at this question, and evaluates whether the promises of market-based regulation have been fulfilled. Contributors put forth the ideas that few regulatory instruments are actually purely market-based, or purely prescriptive, and that both approaches can be systematically undermined by insufficiently careful design and by failures of monitoring and enforcement. All in all, the essays recommend future research that no longer pits one kind of approach against the other, but instead examines their interaction and compatibility. This book should appeal to academics in environmental economics and law, along with policymakers in government agencies and advocates in non-governmental organizations.

Download or read book Environmental Costs of Natural Resource Commodities written by Margaret E. Slade and published by . This book was released on 1992 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: What would happen to resource production, consumption, and revenue if the developing countries adopted the environmental standards set by the industrial countries, while at the same time the industrial countries increased their spending on environmental protection by the same fraction as the developing countries?

Download or read book Three Essays on the Theory of Environmental Regulation written by Insung Son and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contains three original essays in the economic theory of environmental regulation. The main motivations for this work are two problems: the design of greenhouse gas (GHG) policies when emissions of these gases interact with so-called co-pollutants and the design of hybrid price and quantity policies to deal with the uncertainty in the benefits and costs of controlling GHG emissions. Abstract Concerns about how best to control GHGs have generated intense interest in the co-benefits and adverse side-effects of climate policies. Efforts to reduce CO2 emissions can reduce emissions of flow pollutants that are emitted along with CO2, which provides a co-benefit of climate policy. However, it is not always the case that efforts to reduce CO2 emissions have positive co-benefits. The challenge of climate change has also intensified research in policy design under uncertainty about the benefits and costs of controlling GHG emissions. Literature on this problem suggest that a carbon tax is more efficient than carbon trading. However, given that many existing GHG control policies feature tradable permit markets, there have been a lot of interest and innovation in hybrid schemes. The most popular form of these hybrids involves tradable emissions permits with price controls. While there is a significant literature on designing hybrid price and quantity environmental regulations under uncertainty, and another literature on regulating multiple interacting pollutants, no one has addressed the design of an emission markets with price controls for a pollutant that interacts with a co-pollutant in emission control. In Chapter 2, we investigate the optimal regulation of a pollutant given its abatement interaction with another pollutant under asymmetric information about firms' abatement costs. The co-pollutant is regulated, but perhaps not efficiently. Our focus is on optimal instrument choice in this setting, and we derive rules for determining whether a pollutant should be regulated with an emissions tax, tradable permits, or an emissions market with price controls. The policy choices depend on the relative slopes of the damage functions for both pollutants and the aggregate marginal abatement cost function, including whether the pollutants are complements or substitutes in abatement and whether the co-pollutant is controlled with a tax or tradable permits. In Chapter 3, we extend the model in Chapter 2 by allowing a pollutant to interact with a co-pollutant in both abatement and damage. In this situation, we examine the expected performance of optimal price-based regulations for the primary pollutant. We find that, given exogenous but possibly inefficient regulation of a co-pollutant, an optimal permit market, an optimal tax, and an optimal permit market with price controls all produce the same expected emissions for the primary pollutant, which deviates from its ex ante optimal emissions if the co-pollutant is regulated inefficiently. This deviation depends on 1) the interactions of the two pollutants in abatement costs and damages, 2) the deviation of the expected emissions of the co-pollutant from its ex ante optimal emissions, and 3) whether it is regulated with a fixed number of tradable permits or an emissions tax. Another important concern about permit trading has been how much regulations induce investments in abatement capital or technology. As concern about cost containment has increased, the effects of cost-containment policies on abatement investments have gained attention among researchers. In Chapter 4 we examine the effects of a hybrid policy on investment in abatement capital. We construct a dynamic stochastic model to study the decision to invest in irreversible abatement capital under an emissions market with price controls. We consider investment decisions in an emissions market with price controls, and compare these to the decisions in a market without price controls. We found that a price floor tends to increase the opportunity of investment while a price ceiling always reduces the opportunity of investment by imposing an upper bound of investment intervals. Under a hybrid regulation there exists an upper bound of abatement capital stock such that no additional investment occurs. No such upper bound exists for a pure permit trading. On the other hand, there may exist investment opportunities for low marginal abatement costs under a hybrid policy that are not available under a pure permit trading. However, when investments are required under both regulations, increases in capital stock under a hybrid regulation are likely to be less than under pure permit trading.

Download or read book Prices Versus Quantities written by Shi-Ling Hsu and published by . This book was released on 2018 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: Within the world of market mechanisms, two parallel ideas have been formative in the developing discourse on environmental policy: a "price instrument" through a Pigouvian tax, and a "quantity instrument" through a Dalesian emissions trading instrument. Over time, these simple theoretical ideas have developed variants out of political and administrative necessity, which have blurred distinctions and sometimes detracted from the environmental and economic advantages of market mechanisms. That said, a juxtaposition of price instruments with quantity instruments is useful for comparing the administrative and welfare implications. This chapter reviews the relative advantages and disadvantages of price and quantity instruments, with a special concern for climate policy.

Download or read book Three Essays on Prices Vs Quantities in Environmental Policy written by Iris Maria Oberauner and published by . This book was released on 2012 with total page 101 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Combining Price and Quantity Controls Under Partitioned Environmental Regulation written by Jan Abrell and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Green Paradox written by Hans-Werner Sinn and published by MIT Press. This book was released on 2012-02-03 with total page 287 pages. Available in PDF, EPUB and Kindle. Book excerpt: A leading economist develops a supply-side approach to fighting climate change that encourages resource owners to leave more of their fossil carbon underground. The Earth is getting warmer. Yet, as Hans-Werner Sinn points out in this provocative book, the dominant policy approach—which aims to curb consumption of fossil energy—has been ineffective. Despite policy makers' efforts to promote alternative energy, impose emission controls on cars, and enforce tough energy-efficiency standards for buildings, the relentlessly rising curve of CO2 output does not show the slightest downward turn. Some proposed solutions are downright harmful: cultivating crops to make biofuels not only contributes to global warming but also uses resources that should be devoted to feeding the world's hungry. In The Green Paradox, Sinn proposes a new, more pragmatic approach based not on regulating the demand for fossil fuels but on controlling the supply. The owners of carbon resources, Sinn explains, are pre-empting future regulation by accelerating the production of fossil energy while they can. This is the “Green Paradox”: expected future reduction in carbon consumption has the effect of accelerating climate change. Sinn suggests a supply-side solution: inducing the owners of carbon resources to leave more of their wealth underground. He proposes the swift introduction of a “Super-Kyoto” system—gathering all consumer countries into a cartel by means of a worldwide, coordinated cap-and-trade system supported by the levying of source taxes on capital income—to spoil the resource owners' appetite for financial assets. Only if we can shift our focus from local demand to worldwide supply policies for reducing carbon emissions, Sinn argues, will we have a chance of staving off climate disaster.

Download or read book Markets and the Environment Second Edition written by Nathaniel O. Keohane and published by Island Press. This book was released on 2016-01-05 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: "A clear grasp of economics is essential to understanding why environmental problems arise and how we can address them. ... Now thoroughly revised with updated information on current environmental policy and real-world examples of market-based instruments .... The authors provide a concise yet thorough introduction to the economic theory of environmental policy and natural resource management. They begin with an overview of environmental economics before exploring topics including cost-benefit analysis, market failures and successes, and economic growth and sustainability. Readers of the first edition will notice new analysis of cost estimation as well as specific market instruments, including municipal water pricing and waste disposal. Particular attention is paid to behavioral economics and cap-and-trade programs for carbon."--Publisher's web site.

Download or read book Environmental Regulation written by John F. McEldowney and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Featuring an original introduction by the editors, this important collection of essays explores the main issues surrounding the regulation of the environment. The expert contributors illustrate that regulating the environment in the UK is conceptually complex, involves a diverse range of institutions, techniques and methodologies and crosses geographical and national boundaries. In the USA it is more formalised, juridical, adversarial and formally dependent upon legal rules. The articles highlight the fact that despite differences in the UK and the USA's regulatory styles, environmental regulation today has much in common with both traditions.

Download or read book Public Policies for Environmental Protection written by Paul R. Portney and published by Resources for the Future. This book was released on 2000 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: A supplemental text for courses in environmental economics, environmental science, and environmental politics. Writing style is nontechnical and accessible. This second edition is revised to account for changes in the institutional, legal, and regulatory framework of environmental policy, with updated chapters on EPA and federal regulation, air and water pollution policy, and hazardous and toxic substances. There are new chapters on market-based environmental policies, global climate change, and solid waste. Portney is president and senior fellow of Resources for the Future. Stavins is professor of business and government and faculty chair of the Environment and Natural Resources Program at Harvard University. Annotation copyrighted by Book News, Inc., Portland, OR

Download or read book The Theory of Environmental Policy written by William J. Baumol and published by Cambridge University Press. This book was released on 1988-02-26 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt: An analysis of the economic theory of environmental policy and the factors influencing the quality of life. Recent research in environmental economics is incorporated as well as economic incentives for pollution control.

Download or read book Setting the initial time profile of climate policy the economics of environmental policy phase ins written by Roberton C. Williams and published by . This book was released on 2010 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers the question of under what circumstances a new environmental regulation should "phase in' gradually over time, rather than being immediately implemented at full force. The paper focuses particularly on climate policy, though its insights are more general. It shows that while adjustment costs provide a strong efficiency argument for phasing in a quantity-based regulation (or allowing intertemporal flexibility that creates the equivalent of a phase-in), this argument does not apply for price-based regulation. Indeed, in many cases, it will be more efficient to do just the opposite, setting an initially very high emissions price that then falls as the policy phases in. This difference in results comes not from any fundamental difference between price and quantity policies: under either policy, the efficient quantity of abatement rises over time, while the efficient price stays constant or even falls. But other considerations, such as distributional concerns or monitoring and enforcement issues, may still argue for a gradual phase-in even for a price-based policy.