Environmental Regulations, Producer Responses, and Secondary Benefits: Carbon Dioxide Reductions Under the Acid Rain Program

Environmental and Resource Economics

Volumn 59, Issue 1, 2014, Pages 111-135

  Rødseth, Kenneth Løvold ^a   Romstad, Eirik ^a  

^a NORWEGIAN UNIVERSITY OF LIFE SCIENCES   (Norway)

Author keywords

Abatement costs; Data envelopment analysis; Environmental regulation; Materials balance; Multiple pollutants; Secondary benefits

Indexed keywords

ACID RAIN; CARBON DIOXIDE; COSTS; DATA ENVELOPMENT ANALYSIS; GLOBAL WARMING; POLLUTION;

ABATEMENT COSTS; ABATEMENT TECHNOLOGIES; CARBON DIOXIDE EMISSIONS; CARBON DIOXIDE REDUCTION; ENVIRONMENTAL PROBLEMS; MULTIPLE POLLUTANTS; SECONDARY BENEFITS; UNREGULATED EMISSIONS;

ENVIRONMENTAL REGULATIONS;

ABATEMENT COST; ACID RAIN; CARBON DIOXIDE; COMPLIANCE; COST-BENEFIT ANALYSIS; DATA ENVELOPMENT ANALYSIS; ELECTRICITY INDUSTRY; EMISSION CONTROL; REGULATORY FRAMEWORK;

UNITED STATES;

EID: 84906066480     PISSN: 09246460     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10640-013-9720-5     Document Type: Article

References (55)

1. Aigner DJ, Lovell CAK, Schmidt P (1977) Formulation and estimation of stochastic frontier production function models. J Econom 6: 21-37.
2. Arrow KJ, Fisher AC (1974) Environmental preservation, uncertainty, and irreversibility. Q J Econ 88: 312-319.
3. Ayres RU, Kneese AV (1969) Production, consumption, and externalities. Am Econ Rev 59: 282-297.
4. Ayres RU, Walter J (1991) The greenhouse effect: damages, costs and abatement. Environ Resour Econ 1: 237-270.
5. Baumgärtner S, Arons JS (2003) Necessity and inefficiency in the generation of waste. J Ind Ecol 7: 113-123.
6. Brännlund R, Färe R, Grosskopf S (1995) Environmental regulation and profitability: an application to Swedish pulp and paper mills. Environ Resour Econ 6: 23-36.
7. Burtraw D, Krupnick A, Palmer K et al (2003) Ancillary benefits of reduced air pollution in the US from moderate greenhouse gas mitigation policies in the electricity sector. J Environ Econ Manage 45: 650-673.
8. Chambers RG (1988) Applied production analysis: a dual approach. Cambridge University Press, Cambridge.
9. Cline W (1992) The economics of global warming. Institute for International Economics, Washington, DC.
10. Coelli T, Lauwers L, van Huylenbroeck G (2007) Environmental efficiency measurement and the materials balance condition. J Prod Anal 28: 3-12.
11. 2 allowances. J Environ Econ Manage 30: 58-72.
12. Conrad JM (1980) Quasi-option value and the expected value of information. Q J Econ 94: 813-820.
13. Ebert U, Welsch H (2007) Environmental emissions and production economics: implications of the materials balance. Am J Agric Econ 89: 287-293.
14. 2 abatement: how much emission reduction do they justify? Ecol Econ 16: 13-24.
15. Ellerman A D (2003) Lessons from phase 2 compliance with the U. S. Acid Rain Program. MIT _CEEPR, MIT Center for Energy and Environmental Policy Research.
16. x budget trading program 2010 progress report. U. S. Environmental Protection Agency.
17. Färe R, Grosskopf S, Lovell CAK et al (1989) Multilateral productivity comparisons when some outputs are undesirable: a nonparametric approach. Rev Econ Stat 71: 90-98.
18. Färe R, Grosskopf S, Lee H (1990) A nonparametric approach to expenditure-constrained profit maximization. Am J Agric Econ 72: 574-581.
19. Färe R, Grosskopf S, Noh D-W et al (2005) Characteristics of a polluting technology: theory and practice. J Econom 126: 469-492.
20. Färe R, Grosskopf S, Pasurka CA (2007) Pollution abatement activities and traditional productivity. Ecol Econ 62: 673-682.
21. Färe R, Grosskopf S, Pasurka CA et al (2012) Substitutability among undesirable outputs. Appl Econ 44: 39-47.
22. Farrell A, Carter R, Raufer R (1999) The NOx Budget: market-based control of tropospheric ozone in the northeastern United States. Resour Energy Econ 21: 103-124.
23. Førsund FR, Strøm S (1988) Environmental economics and management: pollution and natural resources. Croom Helm, London.
24. Førsund FR (2009) Good modelling of bad outputs: pollution and multiple-output production. Int Rev Environ Resour Econ 3: 1-38.
25. Frisch R (1965) Theory of production. Reidel, Dordrecht.
26. Henry C (1974) Investment decisions under uncertainty: the "irreversibility effect". Am Econ Rev 64: 1006-1012.
27. Kohli U (1983) Non-joint technologies. Rev Econ Stud 50: 209-219.
28. Kolstad CD (2000) Environmental economics. Oxford University Press, New York.
29. Kuosmanen T (2006) Stochastic nonparametric envelopment of data: combining virtues of SFA and DEA in a unified framework. MTT discussion paper, Agrifood Research Finland.
30. Kuosmanen T (2005) Weak disposability in nonparametric production analysis with undesirable outputs. Am J Agric Econ 87: 1077-1082.
31. Kuosmanen T (2008) Representation theorem for convex nonparametric least squares. Econom J 11: 308-325.
32. Kuosmanen T (2009) Data envelopment analysis with missing data. J Oper Res Soc 60: 1767-1774.
33. Kuosmanen T, Laukkanen M (2011) (In)efficient environmental policy with interacting pollutants. Environ Resour Econ 48: 629-649.
34. Kuosmanen T, Kortelainen M (2012) Stochastic non-smooth envelopment of data: semi-parametric frontier estimation subject to shape constraints. J Prod Anal 38: 11-28.
35. Kydland FE, Prescott EC (1977) Rules rather than discretion: the inconsistency of optimal plans. J Polit Econ 85: 473-491.
36. Lauwers L (2009) Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models. Ecol Econ 68: 1605-1614.
37. Lee H, Chambers RG (1986) Expenditure constraints and profit maximization in U. S. agriculture. Am J Agric Econ 68: 857-865.
38. Lee M (2005) The shadow price of substitutable sulfur in the US electric power plant: a distance function approach. J Environ Manage 77: 104-110.
39. Meeusen W, van den Broeck J (1977) Efficiency estimation from Cobb-Douglas production functions with composed error. Int Econ Rev 18: 435-444.
40. x for U. S. coal power plants: a convex nonparametric least squares approach. Energy Econ 34: 723-732.
41. x generation in coal-fired power plants. working paper, Texas A &M University.
42. Murty S, Russell RR, Levkoff SB (2012) On modeling pollution-generating technologies. J Environ Econ Manage 64: 117-135.
43. Nordhaus WD (1991) To slow or not to slow: the economics of the greenhouse effect. Econ J 101: 920-937.
44. Pasurka CA (2006) Decomposing electric power plant emissions within a joint production framework. Energy Econ 28: 26-43.
45. Pethig R (2003) The "materials balance" approach to pollution: its origin, implications and acceptance. Economics Discussion Paper, University of Siegen.
46. Pethig R (2006) Non-linear production, abatement, pollution and materials balance reconsidered. J Environ Econ Manage 51: 185-204.
47. Riahi K, Rubin ES, Taylor MR et al (2004) Technological learning for carbon capture and sequestration technologies. Energy Econ 26: 539-564.
48. Rødseth KL (2011) Treatment of undesirable outputs in production analysis: desirable modeling strategies and applications Dissertation, Norwegian University of Life Sciences.
49. Rødseth KL (2013) Capturing the least costly way of reducing pollution: a shadow price approach. Ecol Econ 92: 16-24.
50. Shephard RW (1974) Indirect production functions. Anton Hain, Meisenhaven am Glan.
51. Shephard RW (1970) Theory of cost and production functions. Princeton University Press, Princeton.
52. Shephard RW, Färe R (1974) The law of diminishing returns. Z Nationalokonomie 34: 69-90.
53. Stern NH (2007) The economics of climate change: the Stern review. Cambridge University Press, Cambridge.
54. Swift B (2001) How environmental law works: an analysis of the utility sector's response to regulations of nitrogen oxides and sulfur dioxide under the Clean Air Act. Tulane Environ Law J 14: 309-424.
55. Welch E, Barnum D (2009) Joint environmental and cost efficiency analysis of electricity generation. Ecol Econ 68: 2336-2343.