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Economic incentives and point source emissions : choice of modeling platform

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  • Kopp, Raymond J.

Abstract

The purpose of this study is to identify the best modeling platform for the analysis of alternative environmental policy instruments designed to reduce the emission of pollutants from point sources, most notably, central power generating stations and manufacturing facilities. The primary analysis of concern is a cost-effectiveness investigation of the policy; where for the most part, the cost of compliance is a multidimensional variable that includes the private costs incurred by the owners of the facility, measures of the change in the cost of providing the facility's product, and estimates of the change in facility capacity factors. The range of pollutants under consideration include the usual menu of air- and waterborne emissions as well as solid and liquid wastes finding their way to landfills and other such disposal options. The range of policies considered include: (a) tariffs on the emission of pollutants; (b) tariffs and subsidies applied to the inputs or the outputs of the point source activities under consideration; (c) limits on the pollutant emissions themselves; and (d) directives regarding the installation of particular equipment and/or the alteration of process activities. The paper also discusses a nonexhaustive set of issues associated with the modeling of point source emissions and policies for their control.

Suggested Citation

  • Kopp, Raymond J., 1992. "Economic incentives and point source emissions : choice of modeling platform," Policy Research Working Paper Series 920, The World Bank.
    • Handle: RePEc:wbk:wbrwps:920
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    References listed on IDEAS

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    1. Raymond J. Kopp & V. Kerry Smith, 1980. "Measuring Factor Substitution with Neoclassical Models: An Experimental Evaluation," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 631-655, Autumn.
    2. Fuss, Melvyn A., 1977. "The demand for energy in Canadian manufacturing : An example of the estimation of production structures with many inputs," Journal of Econometrics, Elsevier, vol. 5(1), pages 89-116, January.
    3. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
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    Cited by:

    1. Blackman, Allen & Harrington, Winston, 1998. "Using Alternative Regulatory Instruments to Control Fixed Point Air Pollution in Developing Countries: Lessons from International Experience," Discussion Papers 10689, Resources for the Future.
    2. Eskeland, Gunnar S. & Jimenez, Emmanuel & Lili Liu & DEC, 1994. "Energy pricing and air pollution : econometric evidence from manufacturing in Chile and Indonesia," Policy Research Working Paper Series 1323, The World Bank.

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