Policy-Induced Technology Adoption: Evidence from the U.S. Lead Phasedown

27 Pages Posted: 14 Dec 2003

See all articles by Suzi Kerr

Suzi Kerr

Motu Economic and Public Policy Research Trust

Richard G. Newell

Duke University - Nicholas School of Environment; National Bureau of Economic Research (NBER); Resources for the Future

Abstract

Theory suggests that economic instruments, such as pollution taxes or tradable permits, can provide more efficient technology adoption incentives than conventional regulatory standards. We explore this issue for an important industry undergoing dramatic decreases in allowed pollution - the U.S. petroleum industry's phasedown of lead in gasoline. Using a duration model applied to a panel of refineries from 1971-1995, we find that the pattern of technology adoption is consistent with an economic response to market incentives, plant characteristics, and alternative policies. Importantly, evidence suggests that the tradable permit system used during the phasedown provided incentives for more efficient technology adoption decisions.

Suggested Citation

Kerr, Suzi and Newell, Richard G., Policy-Induced Technology Adoption: Evidence from the U.S. Lead Phasedown. Journal of Industrial Economics, Vol. 51, pp. 317-343, September 2003. Available at SSRN: https://ssrn.com/abstract=444351

Suzi Kerr (Contact Author)

Motu Economic and Public Policy Research Trust ( email )

Level 1, 93 Cuba Street
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Richard G. Newell

Duke University - Nicholas School of Environment ( email )

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National Bureau of Economic Research (NBER) ( email )

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Resources for the Future ( email )

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