Since the study of Ellerman and Decaux (1998) marginal abatement cost curves (MACCs) have become one of the favorite instruments to analyze the impacts of the implementation of the Kyoto Protocol and emission trading. This paper shows that the MACC in one country depends via the link of world energy prices on the level of abatement in the rest of the world. The strength of the dependence is inf...

This paper studies countries’ incentives to develop advanced pollution abatement technology when technology may spillover across countries and pollution abatement is a global public good. We are motivated in part by the problem of global warming: a solution to this involves providing a global public good, and will surely require the development and implementation of new technologies. We show th...

We study the environmental and economic effects of public abatement in the presence of multiple stable steady-state ecological equilibria. The isocline for the stock of pollution features two stable branches, a good and a bad one. Assuming that the ecology is initially located on the upper (bad) branch of the isocline, the ecological equilibrium is hysteretic and a suitably designed temporary a...

As a consequence of the flexibility mechanisms incorporated in the Kyoto Protocol, incentive-based policies such as emissions trading and the clean development mechanism are being widely discussed in the context of greenhouse gas (GHG) abatement. This paper examines various issues related to incentive-based approaches for India. Some of the specific questions it addresses are: does India stand ...

Global climate change presents a classic problem of decision making under uncertainty with learning. We provide stochastic dominance theorems that provide new insights into when abatement and investment into low carbon technology should increase in risk. We show that R&D into low-carbon technologies and near-term abatement are in some sense opposites in terms of risk. Abatement provides insuran...

This paper empirically tests pollution abatement efforts of Chinese industries in response to pollution regulations, especially the pollution charge instrument practiced in China for about 20 years. The impacts of pollution regulation on abatement expenditures are examined for one thousand large and medium Chinese industrial polluters. The results show that plant-level expenditures on end-of-pi...

In this paper, we discuss the effect of refunding environmental charges. Taxes often are resisted by polluters because they imply both abatement and tax costs. We show that when charges are refunded, the incentives for abatement are essentially the same as for a tax, but the output reduction that often accompanies a tax scheme is forgone. We describe and examine the refund emissions payment (RE...

Salmon aquaculture generates good output (i.e., salmon) and bad output (e.g., pollution). A joint production function approach is applied to model both outputs simultaneously. Two environmental production technologies are specified, namely, regulated and unregulated technologies. Two production functions with different mapping rules are applied. Pollution abatement costs are estimated based on ...

Presents findings from an investigation of the adoption of different “abatement” technologies in 30 Danish firms, encompassing traditional iron manufacturers and electroplating firms. The abatement measures were all instigated to improve environmental or occupational safety and health conditions. Reasons and incentives for these measures were investigated. Finds that there are big differences b...

We examine the impact of abatement taxes on the pollution level in a duopoly framework with endogenous market structure. We demonstrate that an increase in abatement taxes could trigger a regime-switch from joint ventures to Cournot competition, causing the pollution level to increase. Moreover, abatement taxes can implement the first best outcome if and only if the industry is not too pollutin...