Efficient Emission Fees in the U.S. Electricity Sector

Spencer Banzhaf, Dallas Burtraw and Karen Palmer

No 10505, Discussion Papers from Resources for the Future

Abstract: This paper provides new estimates of efficient emission fees for sulfur dioxide (SO2) and nitrogen oxides (NOX) emissions in the U.S. electricity sector. The estimates are obtained by coupling a detailed simulation model of the U.S. electricity markets with an integrated assessment model that links changes in emissions with atmospheric transport, environmental endpoints, and valuation of impacts. Efficient fees are found by comparing incremental benefits with emission fee levels. National quantity caps that are equivalent to these fees also are computed, and found to approximate caps under consideration in the current multi-pollutant debate in the U.S. Congress and the recent proposals from the Bush administration for the electricity industry. We also explore whether regional differentiation of caps on different pollutants is likely to enhance efficiency.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 38
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://ageconsearch.umn.edu/record/10505/files/dp020045.pdf (application/pdf)

Related works:
Journal Article: Efficient emission fees in the US electricity sector (2004)
Working Paper: Efficient Emission Fees in the U.S. Electricity Sector (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:rffdps:10505

DOI: 10.22004/ag.econ.10505

Access Statistics for this paper

More papers in Discussion Papers from Resources for the Future Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().