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Environmental Policy, Fuel Prices, and the Switch to Natural Gas in Santiago, Chile

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  • Coria, Jessica

Abstract

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 showed that sources were more sensitive to the cost of energy than to environmental regulation.

Suggested Citation

  • Coria, Jessica, 2008. "Environmental Policy, Fuel Prices, and the Switch to Natural Gas in Santiago, Chile," RFF Working Paper Series dp-08-28-efd, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-08-28-efd
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    File URL: http://www.rff.org/RFF/documents/EfD-DP-08-28.pdf
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    References listed on IDEAS

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    1. Lori D. Snyder & Nolan H. Miller & Robert N. Stavins, 2003. "The Effects of Environmental Regulation on Technology Diffusion: The Case of Chlorine Manufacturing," American Economic Review, American Economic Association, vol. 93(2), pages 431-435, May.
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    3. Suzi Kerr & Richard G. Newell, 2003. "Policy‐Induced Technology Adoption: Evidence from the U.S. Lead Phasedown," Journal of Industrial Economics, Wiley Blackwell, vol. 51(3), pages 317-343, September.
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    5. Palacios, Milagros & Chávez, Carlos, 2005. "Determinants of compliance in the emissions compensation program in Santiago, Chile," Environment and Development Economics, Cambridge University Press, vol. 10(4), pages 453-483, August.
    6. Coria, Jessica & Sterner, Thomas, 2008. "Tradable Permits in Developing Countries: Evidence from air pollution in Santiago, Chile," Working Papers in Economics 326, University of Gothenburg, Department of Economics.
    7. Nancy L. Rose & Paul L. Joskow, 1990. "The Diffusion of New Technologies: Evidence from the Electric Utility Industry," RAND Journal of Economics, The RAND Corporation, vol. 21(3), pages 354-373, Autumn.
    8. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 941-975.
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    More about this item

    Keywords

    Environmental policy; technological adoption; tradable permits; developing countries;
    All these keywords.

    JEL classification:

    • O29 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Other
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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