IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/42849.html
   My bibliography  Save this paper

Determining optimal air quality standards: Quantities or prices?

Author

Listed:
  • Halkos, George

Abstract

In this study, a basic comparison between the Pigouvian and the Coasean approaches is carried out in order to discuss and comment on the mechanisms by which externalities are resolved. Environmental control approaches are examined and compared in terms of minimization of abatement costs, development of new technologies, revenue-generating capacity, complexity, popularity, incentives to cheat and inflation and adjustment costs. It seems that economic instruments have several advantages over regulations: they are less rigid and static, they are cost-effective, provide a source of finance and encourage innovation. However, market mechanisms do not invalidate regulatory approaches; they are, and must be, an adjunct to them.

Suggested Citation

  • Halkos, George, 2000. "Determining optimal air quality standards: Quantities or prices?," MPRA Paper 42849, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:42849
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/42849/1/MPRA_paper_42849.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516, Elsevier.
    2. George Halkos & John Hutton, "undated". "Acid Rain Games in Europe," Discussion Papers 93/12, Department of Economics, University of York.
    3. Halkos, George, 1993. "Economic incentives for optimal sulphur abatement in Europe," MPRA Paper 33705, University Library of Munich, Germany.
    4. Michael Hoel, 1991. "Efficient International Agreements for Reducing Emissions of CO2," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 93-108.
    5. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    6. Halkos, George, 1994. "A game-theoretic approach to pollution control problems," MPRA Paper 33259, University Library of Munich, Germany.
    7. Eskeland, Gunnar S. & Jimenez, Emmanuel, 1991. "Choosing policy instruments for pollution control : a review," Policy Research Working Paper Series 624, The World Bank.
    8. George Halkos, 1994. "Optimal abatement of sulphur emissions in Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(2), pages 127-150, April.
    9. Martin L. Weitzman, 1974. "Prices vs. Quantities," Review of Economic Studies, Oxford University Press, vol. 41(4), pages 477-491.
    10. Hoel, Michael, 1991. "Global environmental problems: The effects of unilateral actions taken by one country," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 55-70, January.
    11. Halkos, George, 1993. "An evaluation of the direct costs of abatement under the main desulphurisation technologies," MPRA Paper 32588, University Library of Munich, Germany.
    12. Oates, Wallace E & Portney, Paul R & McGartland, Albert M, 1989. "The Net Benefits of Incentive-Based Regulation: A Case Study of Environmental Standard Setting," American Economic Review, American Economic Association, vol. 79(5), pages 1233-1242, December.
    13. Menanteau, Philippe & Finon, Dominique & Lamy, Marie-Laure, 2003. "Prices versus quantities: choosing policies for promoting the development of renewable energy," Energy Policy, Elsevier, vol. 31(8), pages 799-812, June.
    14. Hettelingh, Jean-Paul & Hordijk, Leen, 1986. "Environmental Conflicts: The Case of Acid Rain in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 20(3), pages 38-52, November.
    15. Besanko, David, 1987. "Performance versus design standards in the regulation of pollution," Journal of Public Economics, Elsevier, vol. 34(1), pages 19-44, October.
    16. Helm, Dieter & Pearce, David W, 1990. "Assessment: Economic Policy towards the Environment," Oxford Review of Economic Policy, Oxford University Press, vol. 6(1), pages 1-16, Spring.
    17. Newbery, David M G, 1990. "Acid Rain," CEPR Discussion Papers 442, C.E.P.R. Discussion Papers.
    18. Tietenberg, T H, 1990. "Economic Instruments for Environmental Regulation," Oxford Review of Economic Policy, Oxford University Press, vol. 6(1), pages 17-33, Spring.
    19. 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.
    20. Halkos, George E., 1993. "Sulphur abatement policy: Implications of cost differentials," Energy Policy, Elsevier, vol. 21(10), pages 1035-1043, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Halkos, George, 2013. "Uncertainty in optimal pollution levels: Modeling the benefit area," MPRA Paper 47768, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Halkos, George, 1993. "Economic incentives for optimal sulphur abatement in Europe," MPRA Paper 33705, University Library of Munich, Germany.
    2. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Working Papers 0025, University of Washington, Department of Economics.
    3. Roger Fouquet, 2012. "Economics of Energy and Climate Change: Origins, Developments and Growth," Working Papers 2012-08, BC3.
    4. Hutton, J P & Halkos, G E, 1995. "Optimal acid rain abatement policy for Europe: An analysis for the year 2000," Energy Economics, Elsevier, vol. 17(4), pages 259-275, October.
    5. Gardner M. Brown, 2000. "Renewable Natural Resource Management and Use without Markets," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 875-914, December.
    6. 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.
    7. Halkos, George, 1994. "A game-theoretic approach to pollution control problems," MPRA Paper 33259, University Library of Munich, Germany.
    8. J. Peter Clinch & Eoin O'Neill, 2010. "Assessing the Relative Merits of Development Charges and Transferable Development Rights in an Uncertain World," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 891-911, April.
    9. Halkos, George & Tzeremes, Nickolaos & Kourtzidis, Stavros, 2014. "Abating CO2 emissions in the Greek energy and industry sectors," MPRA Paper 60807, University Library of Munich, Germany.
    10. Arik Levinson, 2011. "Belts and Suspenders: Interactions among Climate Policy Regulations," NBER Chapters, in: The Design and Implementation of US Climate Policy, pages 127-140, National Bureau of Economic Research, Inc.
    11. Halkos, George, 1997. "Modelling optimal nitrogen oxides abatement in Europe," MPRA Paper 33132, University Library of Munich, Germany.
    12. Botor, Benjamin & Böcker, Benjamin & Kallabis, Thomas & Weber, Christoph, 2021. "Information shocks and profitability risks for power plant investments – impacts of policy instruments," Energy Economics, Elsevier, vol. 102(C).
    13. Dominique Finon, 2006. "The Social Efficiency Of Instruments For The Promotion Of Renewable Energies In The Liberalised Power Industry," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(3), pages 309-343, September.
    14. Halkos, George & Kitsos, Christos, 2018. "Mathematics vs. Statistics in tackling Environmental Economics uncertainty," MPRA Paper 85280, University Library of Munich, Germany.
    15. Halkos, G.E., 1994. "Optimal acid rain abatement policy in Europe," MPRA Paper 33943, University Library of Munich, Germany.
    16. Crabbé, Philippe, 1990. "Les économistes doivent-ils se mettre au vert?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 66(3), pages 285-304, septembre.
    17. Halkos, George, 1993. "An evaluation of the direct costs of abatement under the main desulphurisation technologies," MPRA Paper 32588, University Library of Munich, Germany.
    18. Carlsson, F., 1999. "Incentive-based environmental regulation of domestic civil aviation in Sweden," Transport Policy, Elsevier, vol. 6(2), pages 75-82, April.
    19. Madlener, Reinhard & Stagl, Sigrid, 2005. "Sustainability-guided promotion of renewable electricity generation," Ecological Economics, Elsevier, vol. 53(2), pages 147-167, April.
    20. Buchholz Wolfgang & Heindl Peter, 2015. "Ökonomische Herausforderungen des Klimawandels," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(4), pages 324-350, December.

    More about this item

    Keywords

    Pollution; Economic instruments; Abatement costs; International cooperation;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42849. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.