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Diffusion of NOx abatement technologies in Sweden

Bonilla, Jorge; Coria, Jessica LU ; Mohlin, Kristina and Sterner, Thomas (2014) In Working Papers in Economics
Abstract (Swedish)
Abstract in Undetermined

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 a higher net NOx charge liability, i.e. a reduction in tax liabilities net of the refund due to the new technology, 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... (More)
Abstract in Undetermined

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 a higher net NOx charge liability, i.e. a reduction in tax liabilities net of the refund due to the new technology, 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 are 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. (Less)
Please use this url to cite or link to this publication:
author
publishing date
type
Book/Report
publication status
published
subject
keywords
technology diffusion, NOx, abatement technologies, environmental regulations, refunded emission charge
in
Working Papers in Economics
pages
48 pages
publisher
University of Gothenburg
ISSN
1403-2465
project
BECC
language
English
LU publication?
no
id
8c79a01f-4e79-4159-a48f-3718c1b33a3d (old id 4815368)
alternative location
http://hdl.handle.net/2077/35057
date added to LUP
2014-11-28 12:26:29
date last changed
2016-06-29 09:14:00
@techreport{8c79a01f-4e79-4159-a48f-3718c1b33a3d,
  abstract     = {<b>Abstract in Undetermined</b><br/><br>
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 a higher net NOx charge liability, i.e. a reduction in tax liabilities net of the refund due to the new technology, 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 are 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.},
  author       = {Bonilla, Jorge and Coria, Jessica and Mohlin, Kristina and Sterner, Thomas},
  institution  = {University of Gothenburg},
  issn         = {1403-2465},
  keyword      = {technology diffusion,NOx,abatement technologies,environmental regulations,refunded emission charge},
  language     = {eng},
  pages        = {48},
  series       = {Working Papers in Economics},
  title        = {Diffusion of NOx abatement technologies in Sweden},
  year         = {2014},
}