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An Emission Saved is an Emission Earned: An Empirical Study of Emission Banking for Light-Duty Vehicle Manufacturers

  • Rubin, Jonathan D.
  • Kling, Catherine

This paper presents results of an empirical study of emission banking for light-duty vehicle manufacturers. An intertemporal model of manufacturers' choices is combined with econometrically estimated abatement cost functions to simulate the cost savings and emission effects of an averaging, trading, and banking marketable permit system relative to command-and-control regulations. While the cost savings of such a system are estimated to be modest, the intertemporal emission effects may be sizable. The sensitivity of the results to discount rates, abatement cost functions, and model specifications is also explored.

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File URL: http://www.escholarship.org/uc/item/3rb1472g.pdf;origin=repeccitec
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Paper provided by University of California Transportation Center in its series University of California Transportation Center, Working Papers with number qt3rb1472g.

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Date of creation: 01 Jan 1993
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Handle: RePEc:cdl:uctcwp:qt3rb1472g
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  1. Hahn, Robert W & Axtell, Robert L, 1995. "Reevaluating the Relationship between Transferable Property Rights and Command-and-Control Regulation," Journal of Regulatory Economics, Springer, vol. 8(2), pages 125-48, September.
  2. Maloney, Michael T. & Yandle, Bruce, 1984. "Estimation of the cost of air pollution control regulation," Journal of Environmental Economics and Management, Elsevier, vol. 11(3), pages 244-263, September.
  3. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
  4. Carmen Difglio & K.G. Duleep & David L. Green, 1990. "Cost Effectiveness of Future Fuel Economy Improvements," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 65-86.
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