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Emission Trading vs. Rigid Regulations in the Control of Vehicle Emissions

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  • Catherine L. Kling

Abstract

This paper presents the results of an empirical study of the cost savings associated with a marketable permit system for light-duty vehicles relative to the current system of uniform standards. The sensitivity of cost savings estimates to model specification are examined, including estimation approaches for obtaining cost functions, issues of the functional form of emission control cost functions, and choice of pollution variables included in the estimated cost functions. Additionally, the precision of point estimates of cost savings are explored using a simulation method for obtaining estimates of the standard errors of cost savings.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 70 (1994)
Issue (Month): 2 ()
Pages: 174-188

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Handle: RePEc:uwp:landec:v:70:y:1994:i:2:p:174-188

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Web page: http://le.uwpress.org/

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Cited by:
  1. Stavins, Robert, 2001. "Experience with Market-Based Environmental Policy Instruments," Discussion Papers dp-01-58, Resources For the Future.
  2. Kim, Hong Jin & Helfand, Gloria E. & Howitt, Richard E., 1998. "An Economic Analysis Of Ozone Control In California'S San Joaquin Valley," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.
  3. Tietenberg, Tom, 1998. "Ethical influences on the evolution of the US tradable permit approach to air pollution control," Ecological Economics, Elsevier, vol. 24(2-3), pages 241-257, February.
  4. Helfand, Gloria E. & Berck, Peter & Maull, Tim, 2003. "The theory of pollution policy," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 6, pages 249-303 Elsevier.
  5. Schwabe, Kurt A., 2000. "Modeling state-level water quality management: the case of the Neuse River Basin," Resource and Energy Economics, Elsevier, vol. 22(1), pages 37-62, January.
  6. Speir, Cameron & Stephenson, Kurt & Shabman, Leonard A., 2000. "Command-And-Control Or Effluent Allowance Markets: Roles Of Economic Analysis," 2000 Annual meeting, July 30-August 2, Tampa, FL 21869, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Feng, Hongli & Kling, Catherine L. & Kurkalova, Lyubov A. & Secchi, Silvia, 2007. "Cac Versus Incentive-Based Instruments in Agriculture: The Case of the Conservation Reserve Program," Staff General Research Papers 10796, Iowa State University, Department of Economics.
  8. Tomohara, Akinori & Xue, Jian, 2009. "Motorcycles retirement program: Choosing the appropriate regulatory framework," Journal of Policy Modeling, Elsevier, vol. 31(1), pages 126-129.

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