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Technical efficiency of SO2 scrubbers with byproduct contracts

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  • He, Qingxin
  • Lee, Jonathan M.

Abstract

This paper explores the impact of synthetic gypsum, a byproduct of sulfur dioxide (SO2) abatement, on the technical efficiency of SO2 scrubber technology. On average SO2 scrubbers are 60% efficient suggesting substantial emission reductions are possible by narrowing the efficiency gap. Gypsum marketability provides an economic incentive for improved power-plant operation of scrubbers with 8.8% average increases in technical efficiency. By contrast, we do not find any statistically significant evidence of innovative change in scrubbing technology.

Suggested Citation

  • He, Qingxin & Lee, Jonathan M., 2024. "Technical efficiency of SO2 scrubbers with byproduct contracts," Economics Letters, Elsevier, vol. 245(C).
    • Handle: RePEc:eee:ecolet:v:245:y:2024:i:c:s0165176524005330
    DOI: 10.1016/j.econlet.2024.112049
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    References listed on IDEAS

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    1. Richard Schmalensee & Robert N. Stavins, 2013. "The SO 2 Allowance Trading System: The Ironic History of a Grand Policy Experiment," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 103-122, Winter.
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    4. Lien, Gudbrand & Kumbhakar, Subal C. & Alem, Habtamu, 2018. "Endogeneity, heterogeneity, and determinants of inefficiency in Norwegian crop-producing farms," International Journal of Production Economics, Elsevier, vol. 201(C), pages 53-61.
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    6. Lange Ian, 2009. "Evaluating Voluntary Measures with Treatment Spillovers: The Case of Coal Combustion Products Partnership," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-22, September.
    7. He, Qingxin & Lee, Jonathan M., 2014. "Additional market incentives for abatement: An analysis of flue-gas desulfurization by-products," Resource and Energy Economics, Elsevier, vol. 36(2), pages 370-393.
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    Keywords

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    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy

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