This essay offers a comprehensive assessment of the cost savings over the first five years of the allowance trading program. The current study has two methodological advantages over the previous ones. The first is the completeness of the data used. Like the two previous studies, this study estimates scrubber costs from costs reported in survey data, although the current study is able to use cost data from the full five years of Phase I. The data on coal prices used here are much more detailed than that in the other two studies, allowing for plant-level estimates of sulfur premia and counterfactual sulfur content. The second and more significant advantage of the current study is methodological. It employs an econometric model of the abatement choices actually made by utilities to simulate the decisions that would have been made under prescriptive regulation. Thus, abatement costs under counterfactual policies are estimated on the basis of observed behavior under actual policy regimes, rather than on the basis of engineering estimates or least-cost algorithms.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.