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Environmental and Resource Economics

, Volume 69, Issue 2, pp 317–341 | Cite as

The Impacts of Alternative Policy Instruments on Environmental Performance: A Firm Level Study of Temporary and Persistent Effects

  • Brita ByeEmail author
  • Marit E. Klemetsen
Article

Abstract

Using a rich Norwegian panel data set that includes information about environmental regulations such as environmental taxes, non-tradable emission quotas and technology standards, all kinds of polluting emissions, and a large number of control variables, we analyze the effects of direct and indirect environmental regulations on environmental performance. We identify positive and significant effects of both direct and indirect policy instruments. Moreover, we test whether the two types of regulations lead to positive and persistent effects on environmental performance. We find evidence that direct regulations promote such effects. Indirect regulations, on the other hand, will only have potential persistent effects if environmental taxes are increasing over time.

Keywords

Emission intensity Environmental performance Environmental regulation Command-and-control Environmental taxes Long-term effects 

JEL Classification

C01 C23 D04 D22 H23 L51 Q51 Q58 

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Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  1. 1.Statistics NorwayOsloNorway
  2. 2.University of OsloOsloNorway

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