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Environmental policy, fuel prices and the switching to natural gas in Santiago, Chile

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  • Jessica Coria

    ()
    (Gothenburg University)

Abstract

In this study I analyze the pattern of adoption of natural gas in Chile and the drivers behind it. For doing that I have a panel data set of stationary sources from 1995 to 2005 that allows me to identify either the role of environmental policy as the impact of the energy cost inducing the switching to this clean fuel. Besides, I evaluate the performance of the system of environmental contingencies, a non- traditional policy instrument created in Chile in the early nineties, that seemed strongly correlated with the switching. According to the data most of the adoption of natural gas was induced by the lower cost of this fuel, showing that sources were more sensitive to the cost of energy than to the environmental regulation.

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Bibliographic Info

Paper provided by Latin American and Caribbean Environmental Economics Program in its series Working Papers with number 200701.

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Length: 30 pages
Date of creation: Jun 2007
Date of revision: Jun 2007
Publication status: Published in Ecological Economics, 2009, 68(11) pages 2877-2884
Handle: RePEc:lae:wpaper:200701

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  1. Adam Jaffe & Richard Newell & Robert Stavins, 2002. "Environmental Policy and Technological Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 22(1), pages 41-70, June.
  2. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 26(2), pages 646-79, June.
  3. Coria, Jessica & Sterner, Thomas, 2008. "Tradable Permits in Developing Countries: Evidence from Air Pollution in Santiago, Chile," Discussion Papers, Resources For the Future dp-08-34-efd, Resources For the Future.
  4. Blackman, Allen & Harrington, Winston, 1999. "The Use of Economic Incentives in Developing Countries: Lessons from International Experience with Industrial Air Pollution," Discussion Papers, Resources For the Future dp-99-39, Resources For the Future.
  5. Lori Snyder & Nolan Miller & Robert Stavins, 2003. "The Effects of Environmental Regulation on Technology Diffusion: The Case of Chlorine Manufacturing," Working Papers, Fondazione Eni Enrico Mattei 2003.48, Fondazione Eni Enrico Mattei.
  6. Suzi Kerr & Richard G. Newell, 2003. "Policy-Induced Technology Adoption: Evidence from the U.S. Lead Phasedown," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 51(3), pages 317-343, 09.
  7. Montero, Juan-Pablo & Sanchez, Jose Miguel & Katz, Ricardo, 2002. "A Market-Based Environmental Policy Experiment in Chile," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 45(1), pages 267-87, April.
  8. Milagro Palacios & Carlos Chávez, 2003. "Determinants Of Compliance In The Emissions Compensation Program In Santiago, Chile," Working Papers, Departamento de Economía, Universidad de Concepción 01-2003, Departamento de Economía, Universidad de Concepción.
  9. Nelissen, Dagmar & Requate, Till, 2004. "Pollution-Reducing and Resource-Saving Technological Progress," Economics Working Papers, Christian-Albrechts-University of Kiel, Department of Economics 2004,07, Christian-Albrechts-University of Kiel, Department of Economics.
  10. Requate, Till, 2005. "Dynamic incentives by environmental policy instruments--a survey," Ecological Economics, Elsevier, Elsevier, vol. 54(2-3), pages 175-195, August.
  11. Eskeland, Gunnar S & Jimenez, Emmanuel, 1992. "Policy Instruments for Pollution Control in Developing Countries," World Bank Research Observer, World Bank Group, World Bank Group, vol. 7(2), pages 145-69, July.
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Cited by:
  1. Di Falco, Salvatore, 2. "Economic Incentives for Pollution Control in Developing Countries: What Can We Learn from the Empirical Literature?," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L’Informatore Agrario, Edizioni L’Informatore Agrario, issue 2.
  2. Coria, Jessica & Sterner, Thomas, 2008. "Tradable Permits in Developing Countries: Evidence from air pollution in Santiago, Chile," Working Papers in Economics, University of Gothenburg, Department of Economics 326, University of Gothenburg, Department of Economics.
  3. Coria, Jessica, 2011. "Environmental crises' regulations, tradable permits and the adoption of new technologies," Resource and Energy Economics, Elsevier, Elsevier, vol. 33(3), pages 455-476, September.
  4. Caffera, Marcelo, 2011. "The use of economic instruments for pollution control in Latin America: lessons for future policy design," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 16(03), pages 247-273, June.

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