Policy Paper 2: The Value of Being First -San Francisco Workshop summed up in Proceedings Paper 2013/10/15
Dallas Burtraw, Daniel F. Morris, Lars Zetterberg
California and Sweden are in a small group of front runner countries and states on issues of climate policy. In May 2013, Resources for the Future, the Mistra Indigo program, and the ClimateWorks Foundation held a special conference to deconstruct the experiences of California and Sweden in forging new ground toward climate change mitigation and climate policy decisions. At the workshop, leaders from the public, private, and research communities as well as from nongovernmental organizations addressed pathways for climate progress in the current political landscape, issues of industry and state competitiveness, and opportunities for climate gains through action in the transportation arena.Read the full summary of workshop proceedings here and complete speaker bios here.
Working paper: Diffusion of NOx abatement technologies in Sweden 2013/10/04
Jorge Bonilla, University of Gothenburg and Universidad de los Andes, Jessica Coria, University of Gothenburg, Kristina Mohlin, University of Gothenburg,Thomas Sterner, University of Gothenburg
This paper studies how different NOx abatement technologies have diffused under the Swedish system of refunded emissions charges and analyzes the determinants of the time to adoption. The policy, under which the charge revenues are refunded back to the regulated firms in proportion to energy output, was explicitly designed to affect investment in NOx-reducing technologies. The results indicate that paying a higher net NOx charge increases the likelihood of adoption, but only for end-of-pipe post-combustion technologies. We also find some indication that market power considerations in the heat and power industry reduce the incentives to abate emissions through investment in postcombustion technologies. Adoption of post-combustion technologies and the efficiency improving technology of flue gas condensation is also more likely in the heat and power and waste incineration sectors, which is possibly explained by a large degree of public ownership in these sectors.
Working paper: On Refunding of Emission Taxes and Technology Diffusion 2013/10/04
Jessica Coria, University of Gothenburg and Kristina Mohlin, University of Gothenburg
We analyze diffusion of an abatement technology under a standard emission tax compared to an emission tax which is refunded in proportion to output market share. The results indicate that refunding can speed up diffusion if firms do not strategically influence the size of the refund. If they do, it is ambiguous whether diffusion is slower or faster than under a non-refunded emission tax. Moreover, it is ambiguous whether refunding continues over time to provide larger incentives for technological upgrading than a non-refunded emission tax, since the effects of refunding dissipate as the overall industry becomes cleaner.