The authors present a graphical framework to evaluate the implied CO2 abatement costs that can be used by policymakers and resource planners to provide clarity on cost-effective policy design, and on the implications of planning decisions for meeting future de-carbonization goals. The framework would allow for comparison of alternative investments, while distinguishing the extent, type and timi...

This paper answers three questions related to the discrete nature of pollution abatement: (i) does a source's incremental control cost (as defined by the U.S. Environmental Protection Agency) necessarily exceed its average control cost, (ii) is incremental control cost a better approximation of a source's willingness to pay for abatement credits than average control cost, and (iii) exactly how ...

Ž . This paper investigates the significance of induced technological change ITC for the attractiveness of CO abatement policies. We use analytical and numerical general equilib2 rium models in which technological change results from profit-maximizing investments in R&D. We show that carbon abatement policies have very different impacts on R&D across industries, and do not necessarily raise the...

In this paper, we examine the design of permit trading programs when the objective is to minimize the cost of achieving an ex ante pollution target, that is, one that is defined in expectation rather than an ex post deterministic value. We consider two potential sources of uncertainty, the presence of either of which can make our model appropriate: incomplete information on abatement costs and ...

Ambient air pollution in urban and industrial areas in Greece was a serious environmental problem which was connected with rapid urbanization of cities, anarchic housing development without basic infrastructures and increases of motor vehicle fleet in urban regions. Especially Athens, witnessed severe air pollution problems in the decades 1960s‘-1970s‘ and the formation of the infamous brown-ye...

By constructing a dynamic general equilibrium model this paper studies the optimal pollution emission and abatement policies for a small economy. We show that in autarky government issues an optimal level of emission permits but its optimal abatement level is zero at the unique steadystate equilibrium. On the other hand, government employs an optimal two-dimensional policy with free trade if th...

Abatement: A measure or set of measures designed to permanently eliminate lead-based paint hazards or lead-based paint. Abatement strategies include the removal of lead-based paint, enclosure, encapsulation, replacement of building components coated with lead-based paint, removal of lead-contaminated dust, and removal of lead-contaminated soil or overlaying of soil with a durable covering such ...

A major concern with tradable emission permits is that stochastic permit prices may reduce a firm’s incentive to invest in abatement capital or technologies relative to other policies such as a fixed emissions charge. However, under efficient permit trading, the permit price uncertainty is caused by abatement cost uncertainties which affect investment under both permit and charge policies. We d...