In this study, I analyze the role of environmental policies and energy cost savings in the switch to natural gas by stationary sources in Chile. According to the data, most of the switching was induced by the lower cost of natural gas, although environmental policies played a small role and...

This study looks at the effects of the choice between taxes and permits on the pattern of adoption of a new (pollution) emissions abatement technology. It uses a dynamic setting, where the regulator observes the arrival and initial use of the technology and determines the optimal ex-post amount...

There are many situations where environmental authorities use a mix of environmental policy instruments, rather than one single instrument, to address environmental concerns. For example, one instrument may be used to reduce overall emissions of a pollutant while another is used to address...

A decarbonization of the energy sector calls for large new investments in renewable energy production. When choosing the location for increased production capacity, the producer has typically limited incentives to take fully into account the investments costs of the subsequent need for increased...

The EU Parliament has agreed on a target of a 20 % share of renewables in the EU's total energy consumption by 2020. To achieve the target, the Council has adopted mandatory differentiated national targets for each of the Member States. In this paper we consider the potential for cost reductions...

Standard economic theory provides clear guidance on the design of cost-efficient policy in the presence of imperfect markets and externalities. However, observed policies reveal extensive discrepancies between principles and practise. Based on interviews with core politicians from the Norwegian...

New Corporate Average Fuel Economy (CAFE) standards were recently passed in the United States with the twin goals of reducing greenhouse gas emissions and oil use. The new standards represent a dramatic change from recent policy. This paper examines the key features of the new rules, and...

The shale gas revolution in the United States has dropped the price of natural gas (NG) significantly. Combined with new fuel and vehicle technologies, an opportunity exists to expand the use of NG throughout the economy, including in the light-duty fleet of cars and trucks. This expansion could...

There is a large number of regional agreements concerning Greenhouse Gas (GHG) emissions, often linked to other regional integration agreements. The most successful one in making effort in reducing carbon emissions is the Emission Trading System by the European Union (EU ETS). Apart from this...

This paper provides new evidence on the role of non-market based ("command-and-control") regulations in relation to innovations in environmental technologies. While pricing is generally considered the first-best policy instrument, non-market regulations, such as technology standards and...