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The Impact of Heterogeneous NOx Regulations on Distributed Electricity Generation in U.S. Manufacturing

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  • Jonathan M. Lee

Abstract

The US EPA’s command-and-control NOx policies of the early 1990s are associated with a 3.1 percentage point reduction in the likelihood of manufacturing plants vertically integrating the electricity generation process. During the same period California adopted a cap-and-trade program for NOx emissions that resulted in no significant impact on distributed electricity generation in manufacturing. These results suggest that traditional command-and-control approaches to air pollution may exacerbate other market failures such as the energy efficiency gap, because distributed generation is generally recognized as a more energy efficient means of producing electricity

Suggested Citation

  • Jonathan M. Lee, 2015. "The Impact of Heterogeneous NOx Regulations on Distributed Electricity Generation in U.S. Manufacturing," Working Papers 15-12, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:15-12
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    File URL: https://www2.census.gov/ces/wp/2015/CES-WP-15-12.pdf
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    Cited by:

    1. Mark Curtis, E. & Lee, Jonathan M., 2018. "The reallocative and heterogeneous effects of cap-and-trade," Economics Letters, Elsevier, vol. 172(C), pages 93-96.

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