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Vintage differentiated regulations and plant survival: Evidence from coal-fired power plants

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  • Coysh, Daniel
  • Johnstone, Nick
  • Kozluk, Tomasz
  • Nachtigall, Daniel
  • Cárdenas Rodríguez, Miguel

Abstract

We assess the effect of vintage differentiation of regulations (VDRs) regarding air pollution emission limit values on the survival of coal-fired power plants. We apply survival analysis techniques on a sample of generating units across 31 OECD and non-member countries between 1962 and 2012. We find that greater vintage differentiation is associated with significantly higher age at exit of a plant – by up to 14 years. Using the results, we are able to simulate the trade-off relationship between stringency and vintage differentiation in achieving desired emission levels and demonstrate the magnitude of the potential air pollution impacts.

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  • Coysh, Daniel & Johnstone, Nick & Kozluk, Tomasz & Nachtigall, Daniel & Cárdenas Rodríguez, Miguel, 2020. "Vintage differentiated regulations and plant survival: Evidence from coal-fired power plants," Ecological Economics, Elsevier, vol. 176(C).
    • Handle: RePEc:eee:ecolec:v:176:y:2020:i:c:s0921800919315071
    DOI: 10.1016/j.ecolecon.2020.106710
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    More about this item

    Keywords

    Vintage differentiated regulation; Air pollution; Emission limit values; Coal powered plants; Environmental policies; Exit.;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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