Technological modifications in the nitrogen oxides tradable permit program

Journal Article · Tue Jul 01 04:00:00 EDT 2008 · Energy Journal

DOI:https://doi.org/10.5547/ISSN0195-6574-EJ-Vol29-No3-8· OSTI ID:21073770

Linn, J ^[1]

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1. University of Illinois, Chicago, IL (United States). Dept. of Economics

Tradable permit programs allow firms greater flexibility in reducing emissions than command-and-control regulations and encourage firms to use low cost abatement options, including small-scale modifications to capital equipment. This paper shows that firms have extensively modified capital equipment in the Nitrogen Oxides Budget Trading Program, which covers power plants in the eastern United States. The empirical strategy uses geographic and temporal features of the program to estimate counterfactual emissions, finding that modifications have reduced emission rates by approximately 10-15 percent. The modifications would not have occurred under command-and-control regulation and have reduced regulatory costs.

• OSTI ID: 21073770
• Journal Information: Energy Journal, Journal Name: Energy Journal Journal Issue: 3 Vol. 29; ISSN ENJODN; ISSN 0195-6574
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
20 FOSSIL-FUELED POWER PLANTS
AIR POLLUTION ABATEMENT
EMISSION
EMISSIONS TRADING
ENVIRONMENTAL POLICY
FOSSIL-FUEL POWER PLANTS
LICENSES
MODIFICATIONS
NITROGEN OXIDES
USA