Cost effective nutrient abatement for the Baltic Sea under learning-by-doing induced technical changeLindqvist, Martin; Gren, Ing-Marie
AbstractTechnical change is an important factor to take into consideration when analysing environmental issues that span over a long time horizon. One important source of technical change is learning-by-doing. The purpose of this paper is to analyse the impact of technical change through learning-by-doing on the cost effective implementation of the nutrient goals stipulated in the 2007 HELCOM Baltic Sea Action Plan. The impact of learning-by-doing on the cost and allocation of abatement is analysed using a dynamic discrete model of control costs for abatement in the riparian countries of the Baltic Sea. The results indicate that the impact of learning-by-doing on the cost of abatement can be substantial depending on the learning rate and that technical change could lead to substantial cost decreases for the largest polluter, which is Poland.
Keywordscost-effectiveness; learning-by-doing; nutrient abatement; technical change; Baltic Sea
Published inWorking Paper Series / Swedish University of Agricultural Sciences, Department of Economics
2013, number: 2013:01
Publisher: Institutionen för ekonomi, Sveriges lantbruksuniversitet