Environmental Policy and Uncertain Arrival of Future Abatement Technology

Döllen, Andreas von; Requate, Till

doi:10.2202/1935-1682.1951

Cited by 3 publications

(2 citation statements)

References 17 publications

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“…If the arrive time of new technology is unknown, non-tradable quotas can encourage firms to adopt the energy-saving technology earlier than taxes under the low levels of environmental stringency, while the opposite conclusion holds for high levels of environmental stringency [19]. On this basis, ex-ante and ex-post regulation are included in the research framework, the economic incentives of taxes and tradable permits on the adoption of new abatement technologies are studied [20]. However, for the end-ofpipe abatement technology, emission standards can encourage firms to make investment decision earlier than taxes under the high levels of environmental stringency, while the opposite conclusion holds for low levels of environmental stringency [21].…”

Section: Uncertaintymentioning

confidence: 99%

Researches on the Effect of Environmental Policy on Abatement Technology Adoption

Zeng

Zhu

2023

SHS Web Conf.

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To cope with global climate change, a growing number of countries have formulated carbon neutrality schedules. In this context, it is increasingly important for governments to design and implement the policy package to achieve this goal. This paper studies on the economic incentives of environmental policy on firms’ investment in the adoption of new abatement technologies, providing policymakers with more understandings and facilitating the improvement in policy development. The main findings are as follows. First, the economic incentive of environmental policy on abatement technology adoption is ambiguous and it changes with different realistic conditions. Second, the behavior of firms’ investment decisions for different types of abatement technologies under the same environmental policy is distinct. Third, the level of privatization has a positive incentive effect on the level of the abatement technology under taxes regulation. Finally, some key research questions for the future are provided.

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Section: Uncertaintymentioning

confidence: 99%

Researches on the Effect of Environmental Policy on Abatement Technology Adoption

Zeng

Zhu

2023

SHS Web Conf.

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“…One important issue when tackling the problem of carbon-production is the intertemporal aspect of the investment, as von Döllen and Requarte [43] argued. The advantage especially of turquoise hydrogen is that for methane-based hydrogen most of the necessary infrastructure is available.…”

Section: Timing Of Investmentsmentioning

confidence: 99%

The Future Is Colorful—An Analysis of the CO2 Bow Wave and Why Green Hydrogen Cannot Do It Alone

Döllen¹,

Hwang

Schlüter

2021

Energies

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In both the private and public sectors, green hydrogen is treated as a promising alternative to fossil energy commodities. However, building up production capacities involves significant carbon production, especially when considering secondary infrastructure, e.g., renewable power sources. The amount of required capacity as well as the carbon production involved is calculated in this article. Using Germany as an example we show that the switch to purely green hydrogen involves significant bow waves in terms of carbon production as well as financial and resource demand. An economic model for an optimal decision is derived and—based on empirical estimates—calibrated. It shows that, even if green hydrogen is a competitive technology in the future, using alternatives like turquoise hydrogen or carbon capture and storage is necessary to significantly reduce or even avoid the mentioned bow waves.

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Policy Uncertainty and Technology Adoption

Dehghani

2014

The B.E. Journal of Economic Analysis &Amp; Policy

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This paper considers technology adoption under both technological and subsidy uncertainties. Uncertainty in subsidies for green technologies is considered as an example. Technological progress is exogenous and modeled as a jump process with a drift. The analytical solution is presented for cases when there is no subsidy uncertainty and when the subsidy changes once. The case when the subsidy follows a time invariant Markov process is analyzed numerically. The results show that improving the innovation process raises the investment thresholds. When technological jumps are small or rare, this improvement reduces the expected time before technology adoption. However, when technological jumps are large or abundant, this improvement may raise this expected time.

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Environmental Policy and Uncertain Arrival of Future Abatement Technology

Cited by 3 publications

References 17 publications

Researches on the Effect of Environmental Policy on Abatement Technology Adoption

Researches on the Effect of Environmental Policy on Abatement Technology Adoption

The Future Is Colorful—An Analysis of the CO2 Bow Wave and Why Green Hydrogen Cannot Do It Alone

Policy Uncertainty and Technology Adoption

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