Hampf, Benjamin ; Rødseth, Kenneth Løvold (2014)
Optimal Profits under Environmental Regulation: The Benefits from Emission Intensity Averaging.
Report, Erstveröffentlichung
Kurzbeschreibung (Abstract)
In this paper we analyze the economic effects of implementing EPA’s newly proposed regulations for carbon dioxide (CO2) on existing U.S. coal-fired power plants using nonparametric methods on a sample of 144 electricity generating units. Moreover, we develop an approach for evaluating the economic gains from averaging emission intensities among the utilities’ generating units, compared to implementing unit-specific performance standards. Our results show that the implementation of flexible standards leads to up to 2.7 billion dollars larger profits compared to the uniform standards. Moreover, we find that by adopting best practices, current profits can be maintained even if an intensity standard of 0.88 tons of CO2 per MWh is implemented. However, our results also indicate a trade-off between environmental and profit gains, since aggregate CO2 emissions are higher with emission intensity averaging than with uniform standards.
| Typ des Eintrags: | Report |
|---|---|
| Erschienen: | 2014 |
| Autor(en): | Hampf, Benjamin ; Rødseth, Kenneth Løvold |
| Art des Eintrags: | Erstveröffentlichung |
| Titel: | Optimal Profits under Environmental Regulation: The Benefits from Emission Intensity Averaging |
| Sprache: | Englisch |
| Publikationsjahr: | 10 Dezember 2014 |
| Ort: | Darmstadt |
| Reihe: | Darmstadt Discussion Papers in Economics |
| Band einer Reihe: | 220 |
| URL / URN: | http://tuprints.ulb.tu-darmstadt.de/4705 |
| Zugehörige Links: | |
| Kurzbeschreibung (Abstract): | In this paper we analyze the economic effects of implementing EPA’s newly proposed regulations for carbon dioxide (CO2) on existing U.S. coal-fired power plants using nonparametric methods on a sample of 144 electricity generating units. Moreover, we develop an approach for evaluating the economic gains from averaging emission intensities among the utilities’ generating units, compared to implementing unit-specific performance standards. Our results show that the implementation of flexible standards leads to up to 2.7 billion dollars larger profits compared to the uniform standards. Moreover, we find that by adopting best practices, current profits can be maintained even if an intensity standard of 0.88 tons of CO2 per MWh is implemented. However, our results also indicate a trade-off between environmental and profit gains, since aggregate CO2 emissions are higher with emission intensity averaging than with uniform standards. |
| Freie Schlagworte: | JEL classification: D24, L50, Q54 Keywords: Environmental regulation, profit maximization, emission intensity averaging, nonparametric effciency analysis |
| URN: | urn:nbn:de:tuda-tuprints-47056 |
| Sachgruppe der Dewey Dezimalklassifikatin (DDC): | 300 Sozialwissenschaften > 330 Wirtschaft |
| Fachbereich(e)/-gebiet(e): | 01 Fachbereich Rechts- und Wirtschaftswissenschaften 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete > Fachgebiet Empirische Wirtschaftsforschung |
| Hinterlegungsdatum: | 31 Jan 2016 21:00 |
| Letzte Änderung: | 11 Apr 2024 10:57 |
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