Epsilon Archive for Student Projects

Abstract

According to the recently updated version of the framework of Planetary Boundaries, human
society has crossed the sustainable level of four out of nine planetary boundaries. Two
of those are beyond the zone of uncertainty and in the zone of high risk of serious impacts
on the Earth System. It is an alarming situation. In prevailing economical system one way
to handle emission abatement, overconsumption of natural resources and anthropogenic
natural degradation is environmental policy.
The purpose of this study is to empirically evaluate whether the environmental policy the
charge and refund system for nitrogen oxides on large industrial combustion and energy
generating production units in Sweden had an impact on emissions of nitrogen oxides per
unit of energy produced at a firm level, sector aggregated as well as on a sectorial analysis.
Econometric regression models are used on panel data for 272 firms in seven different
sectors covered by the charge and refund system for nitrogen oxides during the period 1992
– 2013 to estimate the effect of the real charge level and the increase in the charge in 2008.
The results from the study finds that in a sector aggregated analysis the estimations is a
negative and statistically significant impact on NOX emissions per produced unit of energy
at a firm level for both the real charge as the increase in the nominal charge in 2008. In a
sectorial analysis the estimations for the real charge and the nominal increase is negative
and statistically significant for the wood industry.