Richard G. Newell

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Costs and benefits in the distant future—such as those associated with global warming, long-lived infrastructure, hazardous and radioactive waste, and biodiversity—often have little value today when measured with conventional discount rates. We demonstrate that when the future path of this conventional rate is uncertain and persistent (i.e., highly(More)
We analyze technology adoption decisions of manufacturers in response to energy audits provided by Department of Energy Industrial Assessment Centers. Using fixed effects logit estimation to control for unobserved plant characteristics, we find that plants respond as expected to financial costs and benefits, though there are unmeasured project-related(More)
We develop a methodology for testing Hick’s induced innovation hypothesis by estimating a product-characteristics model of energy-using consumer durables, augmenting the hypothesis to allow for the influence of government regulations. For the products we explored, the evidence suggests: (i) the rate of overall innovation was independent of energy prices and(More)
Government policies increasingly promote ethanol for security, air quality, and climate benefits. I develop a model that links household preferences for ethanol as a gasoline substitute to aggregate price responses. I estimate the model using data from many retail fueling stations. Ethanol demand is sensitive to relative fuel prices with a mean elasticity(More)
Global warming is one of the most critical, and also most daunting, challenges facing policymakers in the twenty-first century. Assessing a globally efficient time path for pricing or controlling greenhouse gas (GHG) emissions is difficult enough, with huge scientific uncertainties, disagreement over the ultimate goals of climate policy, and disagreement(More)
The relationship between technological change and environmental policy has received increasing attention from scholars and policy makers alike over the past ten years. This is partly because the environmental impacts of social activity are significantly affected by technological change, and partly because environmental policy interventions themselves create(More)
Consequences in the distant future—such as those from climate change—have little value today when discounted using conventional rates. This result contradicts our ‘‘gut feeling’’ about such problems and often leads to ad hoc application of lower rates for valuations over longer horizons—a step facilitated by confusion and disagreement over the correct rate(More)