Targeted Regulation for Reducing High-Ozone Events
This working paper considers a differentiated NOx emissions price that varies according to the hourly and region-specific propensity to cause high-ozone events and finds it is substantially more cost effective at reducing these events.
Nitrogen oxides (NOx) are a precursor to ground-level ozone, a pernicious pollutant that is harmful to human health and ecosystems. Despite decades of regulations and a precipitous decline in NOx emissions, episodic high-ozone events prevent many areas from attaining air quality standards. Theoretically, spatially or temporally differentiated emissions prices could be more cost effective at reducing such events than a uniform price. To test this prediction, with data from EPA and NOAA spanning 2001–2019, we use novel empirical strategies to estimate (1) the link between hourly emissions and high-ozone events and (2) hourly marginal abatement costs. These estimates form the basis for simulations that compare uniform and differentiated emissions pricing. Consistent with economic theory, differentiated pricing is substantially more cost effective at reducing high-ozone events, but this advantage depends on the accuracy of the estimated NOx–ozone relationship.
Working Paper — Nov 20, 2023
Daily Temperature and Sales of Energy-using Durables
This working paper from the European Institute on Economics and the Environment examines whether temperature and other weather variables affect sales of dryers and air conditioning units.
On the Issues — Nov 10, 2023
On the Issues: Renewable Energy Headwinds, Electric Grid Upgrades, and More
A biweekly newsletter connecting global current events, pressing climate and energy policy news, and economics research from RFF scholars. This week: Renewable Energy Headwinds, Electric Grid Upgrades, and More.
Press Release — Nov 9, 2023
Adding an Emissions Cap to the Inflation Reduction Act Could Create More Cost-Effective, Certain Emissions Reductions
New RFF modeling shows that a federal cap on power-sector emissions could carry the United States to its power-sector emissions goal, and that such a cap would be less expensive for emitters and households than it would have been otherwise.