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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
Are There Environmental Benefits From Driving Electric Vehicles? The Importance Of Local Factors, Stephen P. Holland, Erin T. Mansur, Nicholas Z. Muller, Andrew J. Yates
Are There Environmental Benefits From Driving Electric Vehicles? The Importance Of Local Factors, Stephen P. Holland, Erin T. Mansur, Nicholas Z. Muller, Andrew J. Yates
Dartmouth Scholarship
We combine a theoretical discrete-choice model of vehicle purchases, an econometric analysis of electricity emissions, and the AP2 air pollution model to estimate the geographic variation in the environmental benefits from driving electric vehicles. The second-best electric vehicle purchase subsidy ranges from $2,785 in California to -$4,964 in North Dakota, with a mean of -$1,095. Ninety percent of local environmental externalities from driving electric vehicles in one state are exported to others, implying they may be subsidized locally, even when the environmental benefits are negative overall. Geographically differentiated subsidies can reduce deadweight loss, but only modestly.
Profiting From Regulation: Evidence From The European Carbon Market, James B. Bushnell, Howard Chong, Erin T. Mansur
Profiting From Regulation: Evidence From The European Carbon Market, James B. Bushnell, Howard Chong, Erin T. Mansur
Dartmouth Scholarship
We investigate how cap-and-trade regulation affects profits. In late April 2006, the EU CO2 allowance price dropped 50 percent, equating to a €28 billion reduction in the value of aggregate annual allowances. We examine daily returns for 552 stocks from the EUROSTOXX index. Despite reductions in environmental costs, we find that stock prices fell for firms in both carbon- and electricity-intensive industries, particularly for firms selling primarily within the EU. Our results imply that investors focus on product price impacts, rather than just compliance costs and the nominal value of pollution permits.