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dc.contributor.authorLemoine, Derek
dc.date.accessioned2019-04-22T22:03:57Z
dc.date.available2019-04-22T22:03:57Z
dc.date.issued2017-08
dc.identifier.citationLemoine, D. Environ Resource Econ (2017) 67: 789. https://doi.org/10.1007/s10640-016-0006-6en_US
dc.identifier.issn0924-6460
dc.identifier.issn1573-1502
dc.identifier.doi10.1007/s10640-016-0006-6
dc.identifier.urihttp://hdl.handle.net/10150/632086
dc.description.abstractAn increasingly common type of environmental policy instrument regulates the carbon intensity of transportation and electricity markets. In order to extend the policy's scope beyond point-of-use emissions, regulators assign each potential fuel an emission intensity rating for use in calculating compliance. I show that welfare-maximizing ratings do not generally coincide with the best estimates of actual emissions. In fact, the regulator can achieve a higher level of welfare by properly selecting the emission ratings than possible by selecting only the level of the standard. Moreover, a fuel's optimal rating can actually decrease when its estimated emission intensity increases. Numerical simulations of the California Low-Carbon Fuel Standard suggest that when recent scientific information increased the estimated emissions from conventional ethanol, regulators should have lowered ethanol's rating (making it appear less emission-intensive) so that the fuel market would clear with a lower quantity.en_US
dc.language.isoenen_US
dc.publisherSPRINGERen_US
dc.relation.urlhttp://link.springer.com/10.1007/s10640-016-0006-6en_US
dc.rights© Springer Science+Business Media Dordrecht 2016.en_US
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectExternalityen_US
dc.subjectEmissionen_US
dc.subjectIntensityen_US
dc.subjectRatingen_US
dc.subjectSecond-besten_US
dc.subjectEthanolen_US
dc.titleEscape from Third-Best: Rating Emissions for Intensity Standardsen_US
dc.typeArticleen_US
dc.contributor.departmentUniv Arizona, Dept Econ, Eller Coll Managementen_US
dc.identifier.journalENVIRONMENTAL & RESOURCE ECONOMICSen_US
dc.description.note12 month embargo; published online: 24 February 2016en_US
dc.description.collectioninformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.en_US
dc.eprint.versionFinal accepted manuscripten_US
dc.source.journaltitleEnvironmental and Resource Economics
dc.source.volume67
dc.source.issue4
dc.source.beginpage789
dc.source.endpage821
refterms.dateFOA2017-02-24T00:00:00Z


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