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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.

Suggested Citation

  • Jessica Coria, 2007. "Environmental policy, fuel prices and the switching to natural gas in Santiago, Chile," Working Papers 200701, Latin American and Caribbean Environmental Economics Program, revised Jun 2007.
    • Handle: RePEc:lae:wpaper:200701
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    References listed on IDEAS

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    Cited by:

    1. Marcela Alegría & Cristian Mardones & Jorge Jiménez, 2013. "Reduction of Pm10 Emissions under Scenarios of Regulation and Availability of Natural Gas in the Bio Bio Region, Chile," Energy & Environment, , vol. 24(6), pages 1031-1041, October.
    2. Coria, Jessica & Sterner, Thomas, 2008. "Tradable Permits in Developing Countries: Evidence from air pollution in Santiago, Chile," Working Papers in Economics 326, University of Gothenburg, Department of Economics.
    3. Mullins, Jamie T., 2018. "Motivating emissions cleanup: Absolute vs. relative performance standards," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 66-92.
    4. Shen, Bo & Han, Yafeng & Price, Lynn & Lu, Hongyou & Liu, Manzhi, 2017. "Techno-economic evaluation of strategies for addressing energy and environmental challenges of industrial boilers in China," Energy, Elsevier, vol. 118(C), pages 526-533.
    5. Jessica Coria & Jūratė Jaraitė, 2019. "Transaction Costs of Upstream Versus Downstream Pricing of $$\hbox {CO}_{2}$$ CO 2 Emissions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 965-1001, April.
    6. Coria, Jessica & Jaraite, Jurate, 2015. "Carbon Pricing: Transaction Costs of Emissions Trading vs. Carbon Taxes," Working Papers in Economics 609, University of Gothenburg, Department of Economics.
    7. Jessica Coria & Xiao-Bing Zhang, 2015. "State-Dependent Enforcement to Foster the Adoption of New Technologies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(2), pages 359-381, October.
    8. Mundaca T., Luis, 2013. "Climate change and energy policy in Chile: Up in smoke?," Energy Policy, Elsevier, vol. 52(C), pages 235-248.
    9. Di Falco, Salvatore, 2012. "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, vol. 2012(2), pages 1-17, September.
    10. Jessica Coria & Clara Villegas-Palacio, 2014. "Regulatory Dealing: Technology Adoption Versus Enforcement Stringency Of Emission Taxes," Contemporary Economic Policy, Western Economic Association International, vol. 32(2), pages 451-473, April.
    11. Sinha, Avik & Rastogi, Siddhartha K., 2017. "Collaboration between Central and State Government and Environmental Quality: Evidences from Indian Cities," MPRA Paper 100012, University Library of Munich, Germany.
    12. 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, vol. 16(3), pages 247-273, June.
    13. Bonilla, Jorge & Coria, Jessica & Mohlin, Kristina & Sterner, Thomas, 2015. "Refunded emission payments and diffusion of NOx abatement technologies in Sweden," Ecological Economics, Elsevier, vol. 116(C), pages 132-145.
    14. Coria, Jessica, 2011. "Environmental crises' regulations, tradable permits and the adoption of new technologies," Resource and Energy Economics, Elsevier, vol. 33(3), pages 455-476, September.

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