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Evidence of Innovation and Diffusion Under Tradable Permit Programs

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Author Info

  • Bellas, Allen S.
  • Lange, Ian

Abstract

There have been five large tradable permit programs (US Acid Rain Program, US Nitrogen Budget Program, Los Angeles Regional Clean Air Management Program, EU Emissions Trading Scheme, and the US Lead Phase Down) in effect long enough to have potentially yielded data to test whether the program altered the rate of innovation and/or diffusion of abatement technology. This paper is an overview of the literature concerning empirical evidence (or lack thereof) of innovation by the firms that comprise the industries affected by these tradable permit programs. We briefly discuss the methods used to determine technological advance and then more thoroughly review existing studies examining advances in pollution control technology under permit programs. Finally, some overarching observations are presented.

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File URL: http://dx.doi.org/10.1561/101.00000036
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Bibliographic Info

Article provided by now publishers in its journal International Review of Environmental and Resource Economics.

Volume (Year): 5 (2011)
Issue (Month): 1 (May)
Pages: 1-22

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Handle: RePEc:now:jirere:101.00000036

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Web page: http://www.nowpublishers.com/

Related research

Keywords: Pollution control; Tradable permits; Technological advance; Technological diffusion;

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Cited by:
  1. Schmalensee, Richard & Stavins, Robert N., 2012. "The SO2 Allowance Trading System: The Ironic History of a Grand Policy Experiment," Working Paper Series rwp12-030, Harvard University, John F. Kennedy School of Government.
  2. Richard Schmalensee & Robert N. Stavins, 2013. "The SO 2 Allowance Trading System: The Ironic History of a Grand Policy Experiment," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 103-22, Winter.
  3. Stowe, Robert C & Stavins, Robert Norman & Chan, Gabriel Angelo & Sweeney, Richard Leonard, 2012. "The SO2 Allowance Trading System and the Clean Air Act Amendments of 1990: Reflections on Twenty Years of Policy Innovation," Scholarly Articles 8160721, Harvard Kennedy School of Government.

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