Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/119658 
Year of Publication: 
2002
Series/Report no.: 
Nota di Lavoro No. 55.2002
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
Policy makers and analysts are often faced with situations where it is unclear whether market-based instruments hold real promise of reducing costs, relative to conventional uniform standards. We develop analytic expressions that can be employed with modest amounts of information to estimate the potential cost savings associated with market-based policies, with an application to the environmental policy realm. These simple formulae can help increase intuition and understanding of the sources of cost savings, and help identify and design instruments that merit more detailed investigation. We illustrate the use of these results with an application to nitrogen oxides control by electric utilities in the United States.
Subjects: 
environmental policy
market-based instruments
cost heterogeneity
cost effectiveness
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.