Essays on Industry Response to Energy and Environmental Policy

摘要: This dissertation consists of three essays on the relationship between firm incentives and energy environmental policy outcomes. Chapters 1 2 study impact 1990 Clean Air Act Amendments United States oil refining industry. legislation imposed extensive restrictions refined petroleum product markets, requiring select end users to purchase new cleaner versions gasoline diesel. In Chapter 2, I estimate static this intervention costs, prices consumer welfare. Isolating these effects is complicated by several challenges likely appear in other regulatory settings, including overlap regulated non-regulated markets deviations from perfect competition. Using a rich database refinery operations, structural model that incorporates each dimensions, then use cost structure simulate counterfactuals. find policies increased production costs 7 cents per gallon diesel 3 average, although varied considerably across refineries. As result restrictions, consumers experienced welfare losses order $3.7 billion year, but loss was partially offset gains $1.5 dollars year among not subject regulation. The results highlight importance accounting for imperfect competition market spillovers when assessing estimates sunk incurred refineries as low sulfur program. complex, regionally integrated nature industry poses many estimating costs. overcome them placing decision invest removal technology within framework two period using moment inequalities. regulation induced $2.8 $3.3 worth investment produce fuel.