148 research outputs found
Two Generalizations of a Deposit-Refund System
This paper suggests two generalizations of the deposit-refund idea. In the first, we apply the idea not just to solid waste materials, but to any waste from production or consumption including wastes that may be solid, gaseous, or liquid. Using a simple general equilibrium model, we derive the optimal combination of a tax on a purchased commodity and subsidy to a clean' activity (such as emission abatement, recycling, or disposal in a sanitary landfill). This two-part instrument' is equivalent to a Pigovian tax on the dirty' activity (such as emissions, dumping, or litter). In the second generalization, we consider the case where government must use distorting taxes on labor and capital incomes. To help meet the revenue requirement, would the optimal deposit be raised and the refund reduced? We derive the second-best revenue-raising DRS or two-part instrument to answer that question.
Exploring the General Equilibrium Costs of Sector-Specific Environmental Regulations
Code and data to replicate simulations used in "Exploring the General Equilibrium Costs of Sector-Specific Environmental Regulations" by Alex Marten, Richard Garbaccio, and Ann Wolverton, in the Journal of the Association of Environmental and Resource Economists. Some of the data used in the modeling is proprietary and cannot be posted. We provide instructions for obtaining the remaining data and creating the datasets in readme.txt
Exploring the General Equilibrium Costs of Sector-Specific Environmental Regulations
Code and data to replicate simulations used in "Exploring the General Equilibrium Costs of Sector-Specific Environmental Regulations" by Alex Marten, Richard Garbaccio, and Ann Wolverton, in the Journal of the Association of Environmental and Resource Economists. Some of the data used in the modeling is proprietary and cannot be posted. We provide instructions for obtaining the remaining data and creating the datasets in readme.txt
The Effect of Plant Size on Energy-Efficiency Decisions
M.P.P.The gradual diffusion of apparently cost-effective energy-efficiency technologies, known as the energy paradox, has long perplexed policy makers. Many of the explanations, such as information asymmetries, behavioral failures, and barriers to financing, are theoretically related to firm size, but a definitive connection has yet to be made. The Industrial Assessment Center database provides data on thirty years of industrial energy efficiency audits, and is used in this paper to test if size affects the choices available to, and the decisions made by, small and medium sized firms. Plant level fixed effects logit models and pooled logistic regression models are used to examine the effect of employee size on plant managers' energy-efficiency decision-making after an energy audit. The evidence suggests that size has a small but significant effect on adopting a recommendation for plants that are very small or very large in relation to the rest of the sample. Costs of efficiency improvements are more burdensome for very small plants, but increases in predicted savings are make improvements more attractive to small plants in relation to large ones. Overall, the reduction in the likelihood that a plant will adopt a recommendation due to an increase in payback period (cost/savings) is greater for smaller plants than larger plants. While this suggests that market barriers are larger for the smallest plants, they explain only a small part of the energy paradox
Efficiency, Renewables, and the Effect of Energy Policy Interactions on Residential Electricity Consumption in the United States
M.P.P.This paper examines whether the combination of different energy policies yields interaction effects that influence the impact had by any single policy on its outcome of interest. In particular, this study examines whether a particular renewable energy policy--the renewable portfolio standard (RPS)--influences the reductions in electricity consumption that are achieved in residential buildings by an energy efficiency resource standard (EERS). The units of analysis are the 48 contiguous U.S. states, and electricity consumption outcomes are considered for the nine year period 2001 to 2009. Fixed effects panel regression analysis shows that, under certain conditions, interaction effects between RPS and EERS instruments do influence electricity consumption outcomes. The finding is not robust, however, and the interaction effects disappear when certain other policy factors are introduced into the econometric model. This suggests that it may be appropriate to consider policy interactions when making decisions about state-level energy policies, but policy interactions should not be of paramount or overriding concern. In contrast, the significant and robust association between residential electricity consumption and the RPS and other renewable energy policy instruments highlights the importance of considering a broad range of energy policy goals when developing individual policy tools. Similarly, the association between electricity consumption and the EERS instrument reaffirms the importance of carefully considering the specifics of each individual policy on its own merit. Because of the relatively short period of time that EERS policies have been in effect, and also because of other data limitations that appear to obscure the observed relationship between electricity consumption and certain of the explanatory variables, replication of this study's methodology may be warranted after more data--regarding both EERS performance and other determinants of electricity consumption--becomes available. Additional data may enable the effect or non-effect of energy policy interactions to be more conclusively demonstrated
What factors affect an organization's degree of participation in voluntary programs? An analysis of the US EPA Green Power Partnership Program
M.P.P.Voluntary programs are used as an alternative policy mechanism throughout government and non-profit organizations, particularly in areas where regulation does not yet exist. These partnerships are used by many to try to remedy various environmental issues, particularly global climate change. One example of this type of partnership is the US EPA Green Power Partnership (GPP) program whose mission is to promote new, renewable energy to reduce the risks of climate change. The GPP sets minimum green power targets for each member organization dependent upon their annual energy base load. Many participants exceed this minimum target and are considered "Leadership Club" members. This article examines features from each organization that lead them to voluntarily achieve greater environmental outcomes. Using snapshot and fixed-effect models from 2001-2010, positive relationships were found between higher degrees of participation (measured either as a leader or as percentage green power) and the availability of specific resources or technologies, past award recipients, and state-specific variables such as Renewable Portfolio Standard and local environmentalism. The size of the participant, use of solar power, and education and government sector institutions are negatively related to the annual percent of green power and the probability of being a leader in the Green Power Partnership
The Effects of Socioeconomic and Racial Characteristics on Firm Pollution Decisions in the St. Louis MSA
M.P.P.The purpose of this paper is to assess how the characteristics of class and race are associated with facility pollution levels. Other studies have examined the relationship between class and racial characteristics and firm emissions and have found mixed results. For example, Ringquist (1997) and Brooks and Sethi (1997) find a positive and significant correlation between income and emissions levels, while Centner (1996) fails to find a significant correlation between the two variables. Arora and Cason analyze neighborhood characteristics at the zip code level in an attempt to explain changes in toxic emissions releases between 1990 and 1993. My paper builds on the work of Arora and Cason (1996) but differs in several important ways. First, I focus on the St. Louis MSA. Second, I use more recent Toxic Release Inventory and Census Data. In my analysis, I address the following question: Are 2004 emissions (compared to 2000 emissions) disproportionately larger in minority and low-income populations in the St. Louis MSA or not? Using the Heckman two-step maximum likelihood model, I find that the level of pollution earlier in time is a positive predictor of pollution later in time. While environmental justice variables are not statistically significant in my results, further study over longer periods of time and over larger geographic areas may reveal ways in which these variables significantly affect communities
The Two-Part Instrument in a Second-Best World
The views expressed in this paper are those of the author(s) and do not necessarily represent those of the U.S. Environmental Protection Agency. In addition, although the research described in this paper may have been funded entirely or in part by the U.S. Environmental Protection Agency, it has not been subjected to the Agency's required peer and policy review. No official Agency endorsement should be inferred
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Archaeological Site Vulnerability Modeling for Cultural Resources Management Based on Historic Aerial Photogrammetry and LiDAR
GIS has been utilized in cultural resources management for decades, yet its application has been largely isolated to predicting the occurrence of archaeological sites. Federal and State agencies are required to protect archaeological sites that are discovered on their lands, but their resources and personnel are very limited. A new methodology is evaluated that uses modern light detection and ranging (LiDAR) and historic aerial photogrammetry to create digital terrain models (DTMs) capable of identifying sites that are most at risk of damage from changes in terrain. Results revealed that photogrammetric modeling of historic aerial imagery, with limitations, can be a useful decision making tool for cultural resources managers to prioritize conservation and monitoring efforts. An attempt to identify key environmental factors that would be indicative of future topographic changes did not reveal conclusive results. However, the methodology proposed has the potential to add an affordable temporal dimension to future digital terrain modeling and land management. Furthermore, the methods have global applicability because they can be utilized in any region with an arid environment
Environmental protection and optimal taxation
Struck by the fact that economists did not have a plausible model for why emissions standards, and mandated technologies, play a dominant role in pollution control, the author sought answers to two questions: 1) Should one stimulate emissions reductions by firms, and households, rich and poor, in the same way? 2) How should one combine instruments that make activities cleaner, with instruments that shift the economy toward less-polluting activities? Using clean air as an example of a pure public good, he shows the role of emissions taxes, or such surrogate instruments, as emissions standards, and presumptive Pigouvian taxes. To illustrate the combination of demand management, and technical controls, he computes a marginal cost curve for emissions reductions in the form of cleaner cars, and fuels. And he estimates a demand model for cars, and driving. The result: under the assumption that revenue, and re-distributive transfers bear no premia, the cost of reducing pollution in Mexico City increases forty four percent if an emissions standards program is used, and the presumptive Pigouvian tax on gasoline is not. The important finding, as costly redistribution, and revenue generation are introduced, is that this influences the general scheme of taxation (in well-known ways), and it influences the conditions for optimal environmental quality in accordance with Pigou's conjecture. However, it does not change, or invalidate the rankings of technologies, and interventions on the control cost curve, nor does it change the role of demand management in environmental protection.Environmental Economics&Policies,Energy and Environment,Pollution Management&Control,Economic Theory&Research,Carbon Policy and Trading
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