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Title: Market effects of environmental regulation: coal, railroads, and the 1990 Clean Air Act

Abstract

Many environmental regulations encourage the use of 'clean' inputs. When the suppliers of such an input have market power, environmental regulation will affect not only the quantity of the input used but also its price. We investigate the effect of the Title IV emissions trading program for sulfur dioxide on the market for low-sulfur coal. We find that the two railroads transporting coal were able to price discriminate on the basis of environmental regulation and geographic location. Delivered prices rose for plants in the trading program relative to other plants, and by more at plants near a low-sulfur coal source.

Authors:
;  [1]
  1. University of California Berkeley, Berkeley, CA (United States)
Publication Date:
OSTI Identifier:
21017272
Resource Type:
Journal Article
Resource Relation:
Journal Name: Rand Journal of Economics; Journal Volume: 38; Journal Issue: 4
Country of Publication:
United States
Language:
English
Subject:
01 COAL, LIGNITE, AND PEAT; CLEAN AIR ACTS; EMISSIONS TRADING; SULFUR DIOXIDE; MARKET; COAL; SULFUR CONTENT; RAIL TRANSPORT; PRICES

Citation Formats

Busse, M.R., and Keohane, N.O. Market effects of environmental regulation: coal, railroads, and the 1990 Clean Air Act. United States: N. p., 2007. Web. doi:10.1111/j.0741-6261.2007.00130.x.
Busse, M.R., & Keohane, N.O. Market effects of environmental regulation: coal, railroads, and the 1990 Clean Air Act. United States. doi:10.1111/j.0741-6261.2007.00130.x.
Busse, M.R., and Keohane, N.O. Mon . "Market effects of environmental regulation: coal, railroads, and the 1990 Clean Air Act". United States. doi:10.1111/j.0741-6261.2007.00130.x.
@article{osti_21017272,
title = {Market effects of environmental regulation: coal, railroads, and the 1990 Clean Air Act},
author = {Busse, M.R. and Keohane, N.O.},
abstractNote = {Many environmental regulations encourage the use of 'clean' inputs. When the suppliers of such an input have market power, environmental regulation will affect not only the quantity of the input used but also its price. We investigate the effect of the Title IV emissions trading program for sulfur dioxide on the market for low-sulfur coal. We find that the two railroads transporting coal were able to price discriminate on the basis of environmental regulation and geographic location. Delivered prices rose for plants in the trading program relative to other plants, and by more at plants near a low-sulfur coal source.},
doi = {10.1111/j.0741-6261.2007.00130.x},
journal = {Rand Journal of Economics},
number = 4,
volume = 38,
place = {United States},
year = {Mon Jan 01 00:00:00 EST 2007},
month = {Mon Jan 01 00:00:00 EST 2007}
}
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