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Incentives for advanced pollution abatement technology at the industry level: An evaluation of policy alternatives

Journal Article · · Journal of Environmental Economics and Management
;  [1];  [2]
  1. Ohio Univ., Athens, OH (United States)
  2. Indiana Univ., Bloomington, IN (United States)

Encouraging the development and market penetration of advanced pollution abatement technology is an important environmental policy objective. The degree to which alternative environmental policy instruments provide incentives for the development and adoption of new abatement technology is an important policy evaluation criterion. One such compares the incentives provided by five policy instruments - performance standards, emission, subsidies, emissions taxes, and issued and auctioned marketable permits - to encourage firms to development new abatement technology to adopt the new technology, and to pressure regulatory authorities, and to readjust regulation after the market penetration of new technology. This paper extents this comparative approach from the firm to the industry level, computing the aggregate profit gain in a heterogeneous industry facing each of the five environmental policy instruments when new abatement technology is developed and adopted in the industry.

Sponsoring Organization:
USDOE
OSTI ID:
379402
Journal Information:
Journal of Environmental Economics and Management, Journal Name: Journal of Environmental Economics and Management Journal Issue: 1 Vol. 30; ISSN JEEMDI; ISSN 0095-0696
Country of Publication:
United States
Language:
English

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