Adoption of Emissions Abating Technologies by U.S. Electricity Producing Firms Under the SO2 Emission Allowance Market.

详细信息   

• 作者：Creamer ; Gregorio Bernardo.
• 学历：Doctor
• 年：2012
• 导师：Coggins,Jay,eadvisorPardey,Phillip,eadvisorHomans,Francesecommittee memberWilson,Elizabethecommittee member
• 毕业院校：University of Minnesota
• Department：Agricultural and Applied Economics.
• ISBN：9781267667021
• CBH：3540885
• Country：USA
• 语种：English
• FileSize：2806442
• Pages：170

文摘

The objective of this research is to determine the adaptation strategies that coal-based,electricity producing firms in the United States utilize to comply with the emission control regulations imposed by the SO2 Emissions Allowance Market created by the Clean Air Act Amendment of 1990,and the effect of market conditions on the decision making process. In particular,I take into consideration 1) the existence of carbon contracts for the provision of coal that may a affect coal prices at the plant level,and 2) local and geographical conditions,as well as political arrangements that may encourage firms to adopt strategies that appear socially less efficient. As the electricity producing sector is a regulated sector,firms do not necessarily behave in a way that maximizes the welfare of society when reacting to environmental regulations. In other words,profit maximization actions taken by the firm do not necessarily translate into utility maximization for society. Therefore,the environmental regulator has to direct firms into adopting strategies that are socially efficient,i.e.,that maximize utility. The SO 2 permit market is an instrument that allows each firm to reduce marginal emissions abatement costs according to their own production conditions and abatement costs. Companies will be driven to opt for a cost-minimizing emissions abatement strategy or a combination of abatement strategies when adapting to new environmental regulations or markets. Firms may adopt one or more of the following strategies to reduce abatement costs while meeting the emission constraints imposed by the SO2 Emissions Allowance Market: 1) continue with business as usual on the production site while buying SO2 permits to comply with environmental regulations,2) switch to higher quality,lower sulfur coal inputs that will generate less SO2 emissions,or 3) adopting new emissions abating technologies. A utility optimization condition is that the marginal value of each input should be equal to the product generated by using it and to the activities that are required by new regulations. The comparative technological and scale efficiency factors of coal-based electricity producing plants are calculated using the Data Envelopment Analysis DEA) framework,and used as proxies to test this condition. In the empirical analysis,econometric models of the response of firms to emissions control are analyzed around the following aspects: 1) characterization of the behavior of firms and their efficiency,2) relevant variables that trigger the adoption of technology,that is,the acquisition of scrubbers,and 3) the influence of exogenous variables,such as the existence of contracts,distance from mine to plant,and local conditions of the region where plants are located.