haku: @indexterm POLLUTION CONTROL / yhteensä: 252
viite: 12 / 252
| Tekijä: | Considine, T.J. Larson, D.F: |
| Otsikko: | The environment as a factor of production |
| Lehti: | Journal of Environmental Economics and Management
2006 : NOV, VOL. 52:3, p. 645-662 |
| Asiasana: | environmental protection pollution control production |
| Kieli: | eng |
| Tiivistelmä: | This article uses firm-level data about electric utilities to develop an empirical model of how electric utilities use and bank sulfur dioxide pollution permits under the Acid Rain Program. The empirical model considers emissions, fuels, and labour as variable inputs with quasi-fixed stocks of permits and capital, fuel and labour. Evidence is found of substantial substitution between emissions, permit stocks, capital, fuel and labour. It is also shown that firms bank permits primarily as a hedge against uncertainty and for other firm-specific reasons. Furthermore, the results suggest that cap-and-trade approaches can reduce the cost of meeting environmental goals by providing a mechanism for addressing regulatory and market risks and by signaling an appropriate price for factor use, especially irreversible capital investments. |
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