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Sulfur dioxide allowances: Trading and technological progress

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  • Kumar, Surender
  • Managi, Shunsuke

Abstract

The US Clean Air Act Amendments introduce an emissions trading system to regulate SO2 emissions. This study finds that changes in SO2 emissions prices are related to innovations induced by these amendments. We find that electricity-generating plants are able to increase electricity output and reduce emissions of SO2 and NOx from 1995 to 2007 due to the introduction of the allowance trading system. However, compared to the approximate 8% per year of exogenous technological progress, the induced effect is relatively small, and the contribution of the induced effect to overall technological progress is about 1-2%.

Suggested Citation

  • Kumar, Surender & Managi, Shunsuke, 2010. "Sulfur dioxide allowances: Trading and technological progress," Ecological Economics, Elsevier, vol. 69(3), pages 623-631, January.
  • Handle: RePEc:eee:ecolec:v:69:y:2010:i:3:p:623-631
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Yongrok Choi & Hyoung Seok Lee, 2016. "Are Emissions Trading Policies Sustainable? A Study of the Petrochemical Industry in Korea," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-13, October.
    2. repec:spr:envpol:v:20:y:2018:i:3:d:10.1007_s10018-017-0208-3 is not listed on IDEAS
    3. repec:spr:envpol:v:20:y:2018:i:3:d:10.1007_s10018-017-0206-5 is not listed on IDEAS
    4. Grover, David, 2013. "The ‘advancedness’ of knowledge in pollution-saving technological change with a qualitative application to SO2 cap and trade," Ecological Economics, Elsevier, vol. 89(C), pages 123-134.
    5. George Halkos & Aksel Sundström & Nickolaos Tzeremes, 2015. "Regional environmental performance and governance quality: a nonparametric analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(4), pages 621-644, October.
    6. repec:eee:rensus:v:82:y:2018:i:p3:p:3962-3971 is not listed on IDEAS
    7. Olafsson, Snjolfur & Cook, David & Davidsdottir, Brynhildur & Johannsdottir, Lara, 2014. "Measuring countries׳ environmental sustainability performance – A review and case study of Iceland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 934-948.
    8. Martini, Gianmaria & Manello, Alessandro & Scotti, Davide, 2013. "The influence of fleet mix, ownership and LCCs on airports’ technical/environmental efficiency," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 37-52.
    9. Carlos Pestana Barros & Shunsuke Managi & Yuichiro Yoshida, 2010. "Technical Efficiency, Regulation And Heterogeneity In Japanese Airports," Pacific Economic Review, Wiley Blackwell, vol. 15(5), pages 685-696, December.
    10. Wang, H. & Zhou, P. & Zhou, D.Q., 2013. "Scenario-based energy efficiency and productivity in China: A non-radial directional distance function analysis," Energy Economics, Elsevier, vol. 40(C), pages 795-803.
    11. David Grover, 2012. "The �advancedness� of knowledge in pollutionsaving technological change with a qualitative application to SO2 cap and trade," GRI Working Papers 100, Grantham Research Institute on Climate Change and the Environment.
    12. Juan Aparicio & Javier Barbero & Magdalena Kapelko & Jesus T. Pastor & Jose L. Zofio, 2016. "Environmental Productivity Change in World Air Emissions: A new Malmquist-Luenberger Index Approach," JRC Working Papers JRC104083, Joint Research Centre (Seville site).

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