Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 344: Unintended Impacts of Multiple Instruments on Technology Adoption

Jessica Coria ()
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Jessica Coria: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: There are many situations where environmental authorities use a mix of environmental policy instruments, rather than one single instrument, to address environmental concerns. For example, one instrument may be used to reduce overall emissions of a pollutant while another is used to address specific seasonal concerns. Very little work has been done on the economic impacts of the application of multiple instruments. This paper investigates the unintended impacts of the interaction of a tradable permits scheme with direct seasonal regulations on the rate of adoption of advanced abatement technologies.

Keywords: Technology adoption; environmental policy; tradable permits; emission standards; interaction of policies

JEL-codes: O33; Q53; Q55; Q58

44 pages, February 23, 2009

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