Regulatory ‘balancing’ and the efficiency of green R&D

Abstract

We identify and analyse several dynamic implications of setting environmental standards such as to ‘balance’ marginal costs and benefits. The adoption of such a regulatory approach is shown to effect (i) the speed of improvement of abatement technologies; (ii) the ‘direction’ (in a sense to be defined) of that improvement; (iii) its source and the distribution of the rents from it; and (iv) the rate of development of defensive (averting) technologies. Existing views are thoroughly synthesised in the context of a simple diagrammatic model, several new results are derived and at least one conventional wisdom questioned. The message of the analysis for legislators and regulators is that cost-benefit balancing should be done with care. Copyright Kluwer Academic Publishers 1997environmental regulation, cost-benefit analysis, technical change,

The Utilitarian Approach to Environmental Law: Balancing Costs and Benefits

“…One of the earliest and most significant applications of utilitarian principles in environmental law can be traced back to the debates surrounding pollution control and resource management. Here, lawmakers and regulators have often employed utilitarian calculus to weigh the economic benefits of industrial activities against the environmental and health costs associated with pollution (Heyes & Liston-Heyes, 1997). This balancing act reflects the core utilitarian tenet of seeking the greatest good for the greatest number, aiming to achieve an optimal level of pollution that considers both economic growth and environmental protection.…”

“…On one side, carbon taxes have successfully motivated reductions in emissions and fostered innovation in clean technologies. However, as Heyes and Liston-Heyes (1997) point out, the effectiveness of these policies can be undermined by economic and political considerations, such as the potential for industry pushback and the challenge of setting the "right" tax level to achieve desired outcomes (Heyes & Liston-Heyes, 1997). Additionally, concerns about the regressive impacts of environmental taxes on lower-income households highlight the complexities of achieving equitable outcomes through utilitarian strategies.…”

“…Effective application of CBA can be observed in pollution control initiatives, where economic incentives and penalties have been used to mitigate environmental harm while promoting technological innovation. For instance, the implementation of carbon pricing mechanisms, based on the principles of Pigovian taxes, illustrates a utilitarian approach aimed at internalizing the external costs of greenhouse gas emissions (Heyes & Liston-Heyes, 1997). These policies have catalyzed investments in renewable energy and energy efficiency, demonstrating the potential of CBA to align economic activities with environmental objectives.…”

Mergers and Acquisitions Investments of the Greek Systemic Banks During the Last 20 Years. A Financial Analysis

“…As a result, a high D/E ratio is often associated with high investment risk; it means that a company relies primarily on debt financing. 9 Debt/Equity = Total Liabilities / Total Shareholders' Equity (7) viii) Shareholder Equity Ratio The shareholder equity ratio indicates how much of a company's assets have been generated by issuing equity shares rather than by taking on debt. The lower the ratio result, the more debt a company has used to pay for its assets.…”

“…It tends to be more expensive than debt, and it requires some dilution of ownership and giving voting rights to new shareholders. 10 Shareholder Equity Ratio = Shareholder Equity / Total Assets Total (8) ix) Total Debt to Income Ratio (DTIR) TDIR = (Total Debt / Income Ratio)*100 (9) The total debt-to-income (TDIR) ratio is the percentage of income that goes to paying the debt payments and is used by lenders to determine the borrowing risk for a bank or a company. The total debt-to-income (TDIR) ratio measures the amount of income a bank or a company .…”