Environmental and technology policies for climate mitigation

Loading...
Thumbnail Image

Date

2008-03-01

Journal Title

Journal ISSN

Volume Title

Repository Usage Stats

301
views
2024
downloads

Citation Stats

Abstract

We assess different policies for reducing carbon dioxide emissions and promoting innovation and diffusion of renewable energy. We evaluate the relative performance of policies according to incentives provided for emissions reduction, efficiency, and other outcomes. We also assess how the nature of technological progress through learning and research and development (R&D), and the degree of knowledge spillovers, affects the desirability of different policies. Due to knowledge spillovers, optimal policy involves a portfolio of different instruments targeted at emissions, learning, and R&D. Although the relative cost of individual policies in achieving reductions depends on parameter values and the emissions target, in a numerical application to the U.S. electricity sector, the ranking is roughly as follows: (1) emissions price, (2) emissions performance standard, (3) fossil power tax, (4) renewables share requirement, (5) renewables subsidy, and (6) R&D subsidy. Nonetheless, an optimal portfolio of policies achieves emissions reductions at a significantly lower cost than any single policy. © 2007 Elsevier Inc. All rights reserved.

Department

Description

Provenance

Subjects

Citation

Published Version (Please cite this version)

10.1016/j.jeem.2007.11.001

Publication Info

Fischer, C, and RG Newell (2008). Environmental and technology policies for climate mitigation. Journal of Environmental Economics and Management, 55(2). pp. 142–162. 10.1016/j.jeem.2007.11.001 Retrieved from https://hdl.handle.net/10161/6623.

This is constructed from limited available data and may be imprecise. To cite this article, please review & use the official citation provided by the journal.


Unless otherwise indicated, scholarly articles published by Duke faculty members are made available here with a CC-BY-NC (Creative Commons Attribution Non-Commercial) license, as enabled by the Duke Open Access Policy. If you wish to use the materials in ways not already permitted under CC-BY-NC, please consult the copyright owner. Other materials are made available here through the author’s grant of a non-exclusive license to make their work openly accessible.