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The Economics of Gas Utilizationin a Gas-Rich, Oil-Poor Country: The Case of Bangladesh

Gulder Schramm

Year: 1983
Volume: Volume 4
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol4-No1-3
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Abstract:
It has become an article of faith that clean-burning, low-polluting natural gas is a premium fuel and that on a net heat basis it is inherently more valuable than its closest competitor, fuel oil. This conclusion has been drawn by comparing pollution characteristics of both fuels. While the conclusion is correct, it is correct only in regions that have free access to both natural gas and oil delivered to the user's premises at similar costs per Btu.



Cost-Effective Control Strategies for Energy-Related Transboundary Air Pollution in Western Europe

Heinz Welsch

Year: 1990
Volume: Volume 11
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol11-No2-5
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Abstract:
In this paper a simulation model of the West European power plant industry, combined with transboundary source-receptor relationships, is used to determine cost-effective reduction rates for SO2 emissions in any one country so that certain, exogenously given, deposition reduction targets are attained. The overall costs implied by the proposed strategies, and their distribution among countries, are examined and compared to those associated with the traditional emission-standard approach. It is found that the cooperative and flexible strategies considered allow for overall cost savings of up to 60 percent, given the same degree of deposition reduction.



Input-Output Analysis and Pollutant Emissions in France

Jean-Martial Breuil

Year: 1992
Volume: Volume 13
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol13-No3-9
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Abstract:
This paper deals with the principle of pollutant emissions defined by Leontief in 1971, based on a fixed coefficient model. I have tested the plausibility of this model by attempting to replicate data on French emissions of SO2 and NOx by combustion and processes.



The Economic Impact of the Clean Air Act Amendments of 1990

Dale W. Jorgenson and Peter J. Wilcoxen

Year: 1993
Volume: Volume 14
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No1-7
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Abstract:
The purpose of this paper is to quantify the economic impact of the Clean Air Act Amendments of 1990. The long-run cost of environmental regulations enacted prior to 1990 amounts to 2.59% of the U.S. national product. The new legislation will reduce the national product by a further 0.6% when the impact is complete. Electric utilities and primary metals industries will be especially hard hit by this legislation.



The Impact of Natural Gas Imports on Air Pollutant Emissions in Mexico

Alberto Bustani and Elisa Cobas

Year: 1993
Volume: Volume14
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No3-1
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Abstract:
This paper analyzes the impact that natural gas imports could have on fuel emissions in northern Mexico. We discuss the problem created in the 1980s when a shift from natural gas to residual oil in industrial processes increased emissions of air pollutants significantly. The benefits of substituting leaded for unleaded gasoline in the 1990s are discussed also.In July 1992 the Mexican government announced for the first time since oil nationalization that private companies in Mexico are allowed to directly import natural gas. The transportation of natural gas, however, remains reserved only for Pemex, the national oil company. This opens the possibility of reducing the burning of high-sulphur residual oil in both the industrial and the energy production sectors in Mexico, particularly in the northern region where only 6.7% of the of the country's natural gas is produced. Natural gas imports have also opened the possibility of using compressed natural gas (CNG) in vehicles in northern Mexico.



Global Warming and Urban Smog: Cost-Effectiveness of CAFE Standards and Alternative Fuels

Alan J. Krupnick, Margaret A. Walls, and Carol T Collins

Year: 1993
Volume: Volume14
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No4-5
View Abstract

Abstract:
In this paper we estimate the cost-effectiveness, in terms of reducing greenhouse gas emissions, of increasing the corporate average fuel economy (CAFE) standard to 38 miles per gallon and substituting methanol, compressed natural gas (CNG), and reformulated gasoline for conventional gasoline. Greenhouse gas emissions are assessed over the entire fuel cycle and include carbon dioxide, methane, carbon monoxide, and nitrous oxide emissions. To account for joint environmental benefits, the cost per ton of greenhouse gas reduced is adjusted for reductions in volatile organic compound (VOC) emissions, an ozone precursor. CNG is found to be the most cost-effective of these alternatives, followed by increasing the CAFE standard, substituting methanol for gasoline, and substituting reformulated for conventional gasoline. Including the VOC benefits does not change the ranking of the alternatives, bug does make the alternative fuels look better relative to increasing the CAFE standard. None of the alternatives look cost-effective should a carbon tax of $35 per ton be passed, and only CNG under optimistic assumptions looks costeffective with a tax of $100 per ton of carbon.



Emerging Environmental Markets: Improving the Competitiveness of Natural Gas

Janie M. Chermak

Year: 1994
Volume: Volume15
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No3-5
View Abstract

Abstract:
Current U.S. regulations focus on market approaches to reduce SO2, NOx, and CO2 pollution, allowing affected firms to choose the least-cost compliance alternative. Natural gas, a relatively benign fuel from an environmental perspective, could realize a substantial increase in demand if it is competitive. The viability of gas as an alternative has been questioned due to high forecast price and unstable supply. This paper assesses potential efficiency gains in the completion and production of natural gas wells which may lower production costs and increase recoverable reserves. Coupled with the premium that can be paid for its environmentally desirable qualities, gas can potentially be a feasible alternative. However, the window of opportunity is limited, because many industries, such as electric power generation, require decisions involving up-front capital expenditures that lock the firm into a specific compliance mechanism and fuel.



Decomposition of SO2, NO1 and CO2 Emissions from Energy Use of Major Economic Sectors in Taiwan

Sue J. Lin and Tzu C. Chang

Year: 1996
Volume: Volume17
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol17-No1-1
View Abstract

Abstract:
In this paper we use the Divisia index approach to decompose emission changes of SO2, NOx and CO2 from major economic sectors in Taiwan during 1980 to 1992. The study highlights the interrelationships between energy use and environmental quality, and provides insights for policy making. The emission changes are decomposed into five components-pollution coefficient, fuel mix, energy intensity, economic growth and industrial structure. Of all components analyzed, economic growth had the largest positive effect on emission changes for Taiwan's major economic sectors. Emissions of SO2 in industry and other sectors showed a decreasing trend due to fuel quality improvements and pollution control. However, NOx and CO2 emissions increased sharply in all sectors. Comparisons were also made with Germany, Japan and USA. This study hay shown that improvement in energy efficiency, pollution control and fuel substitution are major options to reduce SO2, NOx and CO2 emissions.



Prices that Clear the Air: Energy Use and Pollution in Chile and Indonesia

Gunnar S. Eskeland, Emmanuel Jimenez and Lili Liu

Year: 1998
Volume: Volume19
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol19-No3-5
View Abstract

Abstract:
Emission reductions could be provided by cleaner technologies as well as substitution towards less polluting inputs and goods. We develop a model to assess the scope for emission reductions by input substitution. We then apply the model to manufacturing in Chile and Indonesia-two developing countries considering air pollution control strategies. We estimate substitutability in input demand in manufacturing--using standard techniques-and combine these with emission factors to assess the potential for emission reductions via demand' changes. For sulphur oxides (SO) and suspended particulates (TSP), emission elasticities with respect to the price of heavy fuels range from -0.4 to -1.2. A price increase of 20 percent would reduce emissions of SOx, and TSP by 8 to 24 percent. While these results indicate how emissions can be reduced by presumptive taxes on fuels-clearing the air as well as the markets for energy-such a strategy preferably should be accompanied by other instruments that stimulate cleaner technologies. Similarly, emission standards should be accompanied by presumptive taxes on goods and inputs. Emission taxes, if feasible, optimally combine inducements along both avenues.



At What Cost do We Reduce Pollution? Shadow Prices of SO2 Emissions

John R. Swinton

Year: 1998
Volume: Volume19
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol19-No4-3
View Abstract

Abstract:
The U. S. EPA's infant market for SO2 emissions has the potential for improving the cost effectiveness of reducing acid rain pollutants. If the market works as planned, over time one should see the cost of reducing additional amounts of sulfur dioxide converge across plants. The results of the study described here demonstrate that before the market opened marginal abatement costs varied wildly across plants. This work provides estimates of the shadow price of SO2 abatement using the output distance function approach for Illinois, Minnesota and Wisconsin coal-burning electric plants. The results demonstrate that the coal-burning electric plants with the highest emissions rates are also the plants with the lowest marginal abatement costs, a fact that may explain lower-than-expected prices in the new market for allowances. The data include information about plants with installed scrubber capital allowing for an investigation of the effect of scrubber capital on marginal abatement costs.




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