An Advantage of Emission Intensity Regulation for Emission Cap Regulation in a Near-Zero Emission Industry

Kosuke Hirose and Toshihiro Matsumura

MPRA Paper from University Library of Munich, Germany

Abstract: We revisit command-and-control regulations and compare their efficiencies, in particular, an emission cap regulation that restricts total emissions and an emission intensity regulation that restricts emissions per unit of output under emission equivalence. We find that in both the most stringent target case, when the target emission level is close to zero, and the weakest target case, when the target emission level is close to business as usual, emission intensity yields greater welfare, although the same may not be true in moderate target cases.

Keywords: near-zero emission industry; emission cap; emission intensity; emission equivalence (search for similar items in EconPapers)
JEL-codes: L13 L51 Q52 (search for similar items in EconPapers)
Date: 2018-11-20
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:90134

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