Using a Policy Mix for Pollution Control – A Review of Economic Literature

This article provides a review of economic studies analyzing the use of multiple policies – a socalled policy mix – to cope with single pollution problems. To guide and structure the review, an analytical framework is developed and applied. The framework integrates transaction costs into the analysis of pollution problems and policies to overcome them. Moreover, it understands a pollution externality not only as a market failure but more generally as the failure of private governance structures. Based on this insight, two rationales for using a policy mix are identified. First, a policy mix may help to correct for multiple reinforcing failures of private governance structures, such as pollution externalities and technological spillovers. Second, a policy mix can be employed if the implementation of single first-best policies brings about high transaction costs – e.g., when marginal pollution damages are heterogeneous or polluters are unlikely to comply with the policy. For each rationale, the relevant literature is presented. Based on the review, avenues for future research are identified.policy mix, review, environmental policy, pollution control, externality, transaction costs, Coase

Using a policy mix for pollution control: A review of economic literature

This article provides a review of economic studies analyzing the use of multiple policies - a socalled policy mix - to cope with single pollution problems. To guide and structure the review, an analytical framework is developed and applied. The framework integrates transaction costs into the analysis of pollution problems and policies to overcome them. Moreover, it understands a pollution externality not only as a market failure but more generally as the failure of private governance structures. Based on this insight, two rationales for using a policy mix are identified. First, a policy mix may help to correct for multiple reinforcing failures of private governance structures, such as pollution externalities and technological spillovers. Second, a policy mix can be employed if the implementation of single first-best policies brings about high transaction costs - e.g., when marginal pollution damages are heterogeneous or polluters are unlikely to comply with the policy. For each rationale, the relevant literature is presented. Based on the review, avenues for future research are identified. --policy mix,review,environmental policy,pollution control,externality,transaction costs,Coase

A grassroots sustainable energy niche? Reflections on community energy in the UK

System-changing innovations for sustainability transitions are pro- posed to emerge in radical innovative niches. ‘Strategic Niche Management’ theory predicts that niche-level actors and networks will aggregate learning from local projects, disseminating best practice, and encouraging innovation diffusion. Grassroots inno- vations emerging from civil society are under-researched, and so we investigate the UK community energy sector to empirically test this model. Our analysis draws on qualitative case study research with local projects, and a study of how intermediary organisa- tions support local projects. We examine the extent and nature of interactions and resource flows between projects and intermediary actors in order to evaluate the utility of niche theories in the civil society context. While networking and intermediary organisations can effectively spread some types of learning necessary for diffu- sion, this is not sufficient: tacit knowledge, trust and confidence are essential to these projects’ success, but are more difficult to abstract and translate to new settings. We discuss the implications of our findings for niche theory, for community energy and other grass- roots practitioners aiming to build robust influential niches, and for policymakers

Carbon Emission Policies in Key Economies

The Australian Government asked the Productivity Commission to undertake a study on the ‘effective’ carbon prices that result from emissions and energy reduction policies in Australia and other key economies (the UK, USA, Germany, New Zealand, China, India, Japan and South Korea). The Commissions research report, released 9 June 2011, provides a stocktake of the large number of policy measures in the electricity generation and road transport sectors of the countries studied. And it provides estimates of the burdens associated with these policies in each country and the abatement achieved. While the results are based on a robust methodology, data limitations have meant that some estimates could only be indicative. More than 1000 carbon policy measures were identified in the nine countries studied, ranging from (limited) emissions trading schemes to policies that support particular types of abatement technology. While these disparate measures cannot be expressed as an equivalent single price on greenhouse gas emissions, all policies impose costs that someone must pay. The Commission has interpreted ‘effective’ carbon prices broadly to mean the cost of reducing greenhouse gas emissions — the ‘price’ of abatement achieved by particular policies. The estimated cost per unit of abatement achieved varied widely, both across programs within each country and in aggregate across countries. The relative cost effectiveness of price-based approaches is illustrated for Australia by stylised modelling that suggests that the abatement from existing policies for electricity could have been achieved at a fraction of the cost. The estimated price effects of supply-side policies have generally been modest, other than for electricity in Germany and the UK. Such price uplifts are of some relevance to assessing carbon leakage and competitiveness impacts, but are very preliminary and substantially more information would be required.carbon pricing; cost abatement; greenhouse gas emissions; abatement technology; carbon policy; energy reduction policy; emissions trading scheme; carbon leakage

A grassroots sustainable energy niche? Reflections on community energy case studies

System changing innovations for sustainability transitions are proposed to emerge in radical innovative niches. ‘Strategic Niche Management’ theory predicts that niche level actors and networks will aggregate learning from local projects, distilling and disseminating best practice. This should lower the bar for new projects to form and establish, thereby encouraging the innovation to diffuse through replication. Within this literature, grassroots innovations emerging from civil society are an under researched site of sociotechnical innovation for sustainable energy transitions. We consider the emerging community energy sector in the UK, in order to empirically test this model. Community energy is a diverse grassroots led sector including both demand and supply side initiatives for sustainable energy such as community owned renewable energy generation, village hall refurbishments, behaviour change initiatives and energy efficiency projects. Our analysis draws on in depth qualitative case study research with twelve local projects, and a study of how intermediary organisations aim to support local projects and encourage replication. This rich data allows us to examine the extent and nature of interactions between projects and intermediary actors in order to evaluate the utility of niche theories in the civil society context. In particular, we investigate which types of knowledge, support and resources were needed by our case study projects to become established and thrive, and compare and contrast this with those offered by the emerging community energy niche. Our findings indicate that while networking and intermediary organisations can effectively collate and spread some types of learning and information necessary for replication, this is not sufficient: tacit knowledge, trust and confidence are essential to these projects’ success, but are more difficult to abstract and translate to new settings. We draw out the implications of our findings for niche theory, for community energy and other grassroots practitioners aiming to build robust influential niches, and for policymakers eager to harness civil society’s innovative potential for sustainability

Ecodriving and Carbon Footprinting: Understanding How Public Education Can Reduce Greenhouse Gas Emissions and Fuel Use

Ecodriving is a collection of changes to driving behavior and vehicle maintenance designed to impact fuel consumption and greenhouse gas (GHG) emissions in existing vehicles. Because of its promise to improve fuel economy within the existing fleet, ecodriving has gained increased attention in North America. One strategy to improve ecodriving is through public education with information on how to ecodrive. This report provides a review and study of ecodriving from several angles. The report offers a literature review of previous work and programs in ecodriving across the world. In addition, researchers completed interviews with experts in the field of public relations and public message campaigns to ascertain best practices for public campaigns. Further, the study also completed a set of focus groups evaluating consumer response to a series of websites that displayed ecodriving information. Finally, researchers conducted a set of surveys, including a controlled stated-response study conducted with approximately 100 University of California, Berkeley faculty, staff, and students, assessing the effectiveness of static ecodriving web-based information as well as an intercept clipboard survey in the San Francisco Bay Area. The stated-response study consisted of a comparison of the experimental and control groups. It found that exposure to ecodriving information influenced people’s driving behavior and some maintenance practices. The experimental group’s distributional shift was statistically significant, particularly for key practices including: lower highway cruising speed, driving behavior adjustment, and proper tire inflation. Within the experimental group (N = 51), fewer respondents significantly changed their maintenance practices (16%) than the majority that altered some driving practices (71%). This suggests intentionally altering driving behavior is easier than planning better maintenance practices. While it was evident that not everyone modifies their behavior as a result of reviewing the ecodriving website, even small shifts in behavior due to inexpensive information dissemination could be deemed cost effective in reducing fuel consumption and emissions

Policies for capacity development

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Business model: what should be the strategy used by Smart Galp to implement and potentiate its value proposition in the Portuguese market?

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and EconomicsFor a long period, energy has been seen as an invisible good. In the users' mind, choices and costs related to energy are not connected. However, for consumers to change their behavior these two may be connected and consumers should become aware of the consequences of their actions and motivated to adjust them. Through the development of Smart meters, the next generation of gas and electricity meters which offer a range of intelligent functions and provide consumers with more accurate information, Galp Energia created Smart Galp - a revolutionary service that allows the consumer to control, monitor and influence the energy consumption of his household and automobile. This work project studies the best strategy to implement and potentiate Smart Galp value proposition in the Portuguese Market. The objective is to launch the service in the market. Thus, after all the internal and external analysis, it was defined the business model and the competitive strategy. A risk assessment and recommendations were conducted in order to achieve a successful implementation

The Allure of Technology: How France and California Promoted Electric Vehicles to Reduce Urban Air Pollution

All advanced industrialized societies face the problem of air pollution produced by motor vehicles. In spite of striking improvements in internal combustion engine technology, air pollution in most urban areas is still measured at levels determined to be harmful to human health. Throughout the 1990s and beyond, California and France both chose to improve air quality by means of technological innovation, adopting legislation that promoted clean vehicles, prominently among them, electric vehicles (EVs). In California, policymakers chose a technology-forcing approach, setting ambitious goals (e.g., zero emission vehicles), establishing strict deadlines and issuing penalties for non-compliance. The policy process in California called for substantial participation from the public, the media, the academic community and the interest groups affected by the regulation. The automobile and oil industries bitterly contested the regulation, in public and in the courts. In contrast, in France the policy process was non-adversarial, with minimal public participation and negligible debate in academic circles. We argue that California's stringent regulation spurred the development of innovative hybrid and fuel cell vehicles more effectively than the French approach. However, in spite of the differences, both California and France have been unable to put a substantial number of EVs on the road. Our comparison offers some broad lessons about how policy developments within a culture influence both the development of technology and the impact of humans on the environment.Environmental policy, Electric vehicles, Air pollution, Technology policy, Sustainable transport