Sulfur dioxide allowances: Trading and technological progress

Surender Kumar, Shunsuke Managi

Research output: Contribution to journalArticle

26 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 - Jan 15 2010

Fingerprint

sulfur dioxide
electricity
emissions trading
innovation
air
allowance
Technological progress
Sulfur dioxide
effect
Amendments
Trading systems
Electricity

All Science Journal Classification (ASJC) codes

  • Environmental Science(all)
  • Economics and Econometrics

Cite this

Sulfur dioxide allowances : Trading and technological progress. / Kumar, Surender; Managi, Shunsuke.

In: Ecological Economics, Vol. 69, No. 3, 15.01.2010, p. 623-631.

Research output: Contribution to journalArticle

@article{56de3e7fd52048209b24591e0d310350,
title = "Sulfur dioxide allowances: Trading and technological progress",
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{\%}.",
author = "Surender Kumar and Shunsuke Managi",
year = "2010",
month = "1",
day = "15",
doi = "10.1016/j.ecolecon.2009.09.013",
language = "English",
volume = "69",
pages = "623--631",
journal = "Ecological Economics",
issn = "0921-8009",
publisher = "Elsevier",
number = "3",

}

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%.

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 -