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

Jonathan Lee

Working Papers from U.S. Census Bureau, Center for Economic Studies

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

Pages: 41 pages
Date: 2015-04
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (1)

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https://www2.census.gov/ces/wp/2015/CES-WP-15-12.pdf First version, 2015 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:15-12

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