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Technical Synergies and Trade-Offs Between Abatement of Global and Local Air Pollution

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  • Jorge Bonilla

    (Universidad de los Andes)

  • Jessica Coria

    (University of Gothenburg)

  • Thomas Sterner

    (University of Gothenburg)

Abstract

In this paper, we explore the synergies and tradeoffs between abatement of global and local pollution. We build a unique dataset of Swedish combined heat and power plants with detailed boiler-level data 2001–2009 on not only production and inputs but also on emissions of $$\hbox {CO}_{2}$$ CO 2 and $$\hbox {NO}_{\mathrm{x}}$$ NO x . Both pollutants are regulated by strict policies in Sweden. $$\hbox {CO}_{2}$$ CO 2 is subject to the European Union Emission Trading Scheme and Swedish carbon taxes; $$\hbox {NO}_{\mathrm{x}}$$ NO x —as a precursor of acid rain and eutrophication—is regulated by a heavy fee. Using a quadratic directional output distance function, we characterize changes in technical efficiency as well as patterns of substitutability in response to the policies mentioned. The fact that generating units face a trade-off between the pollutants indicates the need for policy coordination.

Suggested Citation

  • Jorge Bonilla & Jessica Coria & Thomas Sterner, 2018. "Technical Synergies and Trade-Offs Between Abatement of Global and Local Air Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(1), pages 191-221, May.
    • Handle: RePEc:kap:enreec:v:70:y:2018:i:1:d:10.1007_s10640-017-0117-8
    DOI: 10.1007/s10640-017-0117-8
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    Cited by:

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    4. Jianxin Guo & Xianchun Tan & Xiaoyan Meng & Yanping Li, 2022. "Clean technology investment considering synergistic effects: a case from the steel sintering process," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 13748-13770, December.

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    More about this item

    Keywords

    Environmental policies; Shadow pricing; Directional distance function; Climate change; Local pollution; Policy interactions;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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