Policy-induced technology adoption: Evidence from the U.S. lead phasedown
Abstract
Theory suggests that economic instruments, such as pollution taxes or tradable permits,
can provide more efficient technology adoption incentives than conventional regulatory
standards. We explore this issue for an important industry undergoing dramatic decreases
in allowed pollution - the U.S. petroleum industry's phasedown of lead in gasoline.
Using a duration model applied to a panel of refineries from 1971-1995, we find that
the pattern of technology adoption is consistent with an economic response to market
incentives, plant characteristics, and alternative policies. Importantly, evidence
suggests that the tradable permit system used during the phasedown provided incentives
for more efficient technology adoption decisions.
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https://hdl.handle.net/10161/9131Collections
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Richard G. Newell
Adjunct Professor
Dr. Richard G. Newell is the President and CEO of Resources for the Future (RFF),
an independent, nonprofit research institution that improves environmental, energy,
and natural resource decisions through impartial economic research and policy engagement.
From 2009 to 2011, he served as the administrator of the US Energy Information Administration,
the agency responsible for official US government energy statistics and analysis.
Dr. Newell is an adjunct professor at Duke University, where he

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