Firm incentives to promote technological change in pollution control: Reply

Abstract The process of technological change in pollution control is broken into three basic steps: innovation, diffusion, and optimal agency response. Firm incentives to promote these steps are then examined under five regulatory regimes: direct controls, emission subsidies, emission taxes, free marketable permits, and auctioned marketable permits. On a relative basis, emission taxes and auctioned permits provide the highest firm incentives to promote technological change; at times, free permits generate lower incentives. Direct controls, which are common regulatory tools, usually provide the lowest relative firm incentives to promote technological change.

[1]  Lawrence J. White,et al.  Innovation in pollution control , 1986 .

[2]  G. Yohe,et al.  Substitution and the control of pollution: A comparison of effluent charges and quantity standards under uncertainty , 1976 .

[3]  Albert L. Nichols,et al.  Targeting Economic Incentives for Environmental Protection , 1984 .

[4]  Robert Mendelsohn,et al.  Regulating heterogeneous emissions , 1986 .

[5]  W. Rosenberg.  Clean air act amendments. , 1991, Science.

[6]  J. M. Griffin,et al.  Uncertainty and the choice of pollution control instruments , 1976 .

[7]  Tom Tietenberg.  CONTROLLING POLLUTION BY PRICE AND STANDARD SYSTEMS: A GENERAL EQUILIBRIUM ANALYSIS , 1973 .

[8]  M. Kamien,et al.  Asymmetry between bribes and charges , 1966 .

[9]  Stephen J. Rassenti,et al.  Designing Call Auction Institutions: Is Double Dutch The Best? , 1992 .

[10]  W. L. Baldwin.  Market power, competition, and antitrust policy , 1987 .

[11]  Allen V. Kneese,et al.  The Economics of Regional Water Quality Management , 2011 .

[12]  W. Baumol.  On Taxation and the Control of Externalities , 1972 .

[13]  Wesley A. Magat,et al.  Pollution control and technological advance: A dynamic model of the firm , 1978 .

[14]  C. Schultze,et al.  POLLUTION, PRICES, AND PUBLIC POLICY , 1977 .

[15]  Economic incentives in air pollution control , 1972 .

[16]  Richard O. Zerbe,et al.  THEORETICAL EFFICIENCY IN POLLUTION CONTROL , 1970 .

[17]  A. Malik,et al.  Markets for Pollution Control when Firms Are Noncompliant , 1990 .

[18]  Wallace E. Oates,et al.  The theory of environmental policy , 1976 .

[19]  D. Dewees.  INSTRUMENT CHOICE IN ENVIRONMENTAL POLICY , 1983 .

[20]  C. Russell,et al.  Comparative analysis of alternative policy instruments , 1985 .

[21]  A. Marin.  The choice of efficient pollution policies: Technology and economics in the control of sulphur dioxide , 1978 .

[22]  Tom Tietenberg,et al.  Transferable discharge permits and the control of stationary source air pollution: a survey and synthesis , 1980 .

[23]  P. Downing.  A political economy model of implementing pollution laws , 1981 .

[24]  G. Fishelson.  Emission control policies under uncertainty , 1976 .

[25]  M. Weitzman.  Prices vs. Quantities , 1974 .

[26]  Evan Kwerel,et al.  To Tell the Truth: Imperfect Information and Optimal Pollution Control , 1977 .

[27]  Wesley A. Magat,et al.  The Effects of Environmental Regulation on Innovation , 1979 .

[28]  Robert B. Wilson.  Auctions of Shares , 1979 .

[29]  W. Baumol,et al.  The Use of Standards and Prices for Protection of the Environment , 1971 .

[30]  A. Freeman.  Bribes and charges: Some comments , 1967 .

[31]  Stephen J. Rassenti,et al.  Auction Institutional Design: Theory and Behavior of Simultaneous Multiple Unit Generalizations of the Dutch and English Auctions , 1990 .

[32]  R. McHugh.  The Potential for Private Cost-Increasing Technological Innovation under a Tax-Based, Economic Incentive Pollution Control Policy , 1986 .

[33]  Allen V. Kneese,et al.  Managing Water Quality: Economics, Technology, Institutions , 1968 .

[34]  Brian Beavis,et al.  Firm behaviour under regulatory control of stochastic environmental wastes by probabilistic constraints , 1987 .

[35]  D. F. Greer,et al.  Industrial Organization and Public Policy , 1980 .

[36]  J. Wenders.  Methods of pollution control and the rate of change in pollution abatement technology , 1975 .

[37]  Dwight R. Lee.  The economics of enforcing pollution taxation , 1984 .

[38]  A. Marin,et al.  Firm incentives to promote technological change in pollution control: Comment☆ , 1991 .