Consequences of the IPPC-directive’s BAT requirements for abatement costs and emissions
MetadataShow full item record
- Discussion Papers 
Abstract: The Integration Pollution and Prevention Control (IPPC) directive from the European Union implies that the regulatory emission caps should be set in accordance with each industry’s Best Available Techniques (BAT). The directive is under implementation in Norway, and it represents a refocus of the Norwegian environmental regulations away from economic efficiency towards a BAT principle. We examine the effect of this implementation with respect to expected emission reductions and increases in costs. Data Envelopment Analyses (DEA) is used to construct a frontier of all efficient plants. This provides us with two alternative interpretations of BAT. First, we assume that all the plants emit in accordance with the best practice technology, represented by the frontier, by reducing all inputs proportionally. Second, we assume that all plants emit in accordance with the best practice technology by reducing emissions only. Both interpretations reveal substantial potential for emission reductions. Further, abatement cost estimates indicate that considerable emission reductions can be achieved with low or no social costs, but that the implementation of BAT for all plants involves substantial costs. Keywords: IPPC, BAT, Emissions, Energy intensive industries, DEA, Technical efficiency, Frontier technology.
PublisherStatistics Norway, Research Department
SeriesDiscussion Papers;No. 411
Showing items related by title, author, creator and subject.
The impacts of alternative policy instruments on environmental performance. A firm level study of temporary and persistent effects Bye, Brita; Klemetsen, Marit E. (Discussion papers;788, Working paper, 2014-10)We study the effects of various environmental regulations on environmental performance measured as emission intensity. Moreover, we aim to test whether any such effects are persistent or only temporary. Conventional theory ...
Markets where buyers also are sellers : how realized home equity may work as an accelerator of house prices Larsen, Erling Røed (Discussion Papers;No. 618, Working paper, 2010)Abstract: The house price level is a function of buyers’ realized home equity, and buyers’ realized home equity is a function of the house price level. This interdependence follows from the fact that buyers are sellers ...
Removing policy based comparative advantage for energy intensive production. Necessary adjustments of the real exchange rate and industry structure Bye, Torstein; Holmøy, Erling; Heide, Kim Massey (Discussion Papers;No. 462, Working paper, 2006)Abstract: National and international expansion of transmission networks and diminishing returns to scale in hydropower capacity expansion has raised the opportunity cost of electricity. The resulting changes in comparative ...