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g{h|eg ~|k~`ap= oda bon`f`o`de mdhuflael {od~bl{ klulld ehrl{dild&
{le|fola {i~& oda h|~`al ldr`{hdildof lq|`sild ~|ssf`l{~ g{h|eg
lrl{pg`de b{hi gl sold ~p~li h `da|~{p~sln`n nhdbl{ldnl~& s|kf`no
`hd~& oda nhffokh{o`hd~$
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ldr`{hdildof lngdhfhe`l~ 'lo{fp sosl{~ hd g`~ hs`n `dnf|al Mdll~l "
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Qopfh{& [|k`d " Gh|d~glff LDR@[HDILDQOF QLNGDHFHEP
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Qopfh{& [|k`d " Gh|d~glff LDR@[HDILDQOF QLNGDHFHEP
>
;33< Kofap Nldl{ bh{ Fou oda ^hn`of Shf`np oda Kfonmulff S|kf`~g`de Fa$
oda o{ng`ln|{of oda lde`dll{`de {i~oda gl |~l{~ hb gl`{ s{ha|n~&
gl shul{ nhisod`l~$ Qgl~l onh{~ o{l liklaala `d ~odao{a k|~`dl~~ {lfo
`hd~g`s~ u`g ~|ssf`l{~& k|pl{~& nhisl`h{~& oda ~|k~`|l~& o~ {ls{l
~ldla kp o{{hu~ u`gh| ldash`d~ `d B`e|{l ;$ Qgl ~`defl ao~gla o{{hu `d
gl e|{l `~ klulld shul{ nhisod`l~ oda o rl{p ~sln`of oda `ish{od
`ddhro`rl onh{& gl Lfln{`n Shul{ [l~lo{ng @d~`|l 'LS[@)& ug`ng `~
gl \$^$ |`f`p ~lnh{~ dhds{h nhhsl{o`rl {l~lo{ng& alrlfhsild& oda
alihd~{o`hd '[A"A) nhd~h{`|i$ H{eod`zo`hd~ u`gh| o{{hu~ o{l
g`egf`egla klno|~l hb gl`{ `ddhro`rl `ish{odnl= gl`{ nhddln`hd~ h gl
hgl{ h{eod`zo`hd~ o{l dh o~ lo~`fp alf`dlola o~ `d gl no~l hb gl shul{
nhisodphLS[@ `l$ Fo~fp& gl h|~`al{~ `d g`~ e|{l {lbl{ h `da|~
{`l~ h|~`al g`~ khw hb gl `da|~{`of ldr`{hdildof `ddhro`hd nhisflw
go gorl lngd`nof {lflrodnl h gl ~sln`of`l~ `drhfrla `d~`al `$
Qgl nhisflw`p hb gl `ddhro`hd s{hnl~~ `d ldr`{hdildof lngdhfhep`dl{i~ hb on`r``l~& ehrl{dild on`hd~& oda onh{~sh~l~ ilghahfhe`nof
ngoffldel~$ Qg`~ o{`nfl kle`d~ h nhdb{hd gl~l ngoffldel~ kp bhn|~`de hd
gl b|ff g`~h{p hb ^H
;
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offhu~ a`rl{~l ehrl{dild on`hd~ {lfola h g`~ ~`defl shff|od h kl
~|a`la& ug`fl f`i``de gl ro{`lp hb ldr`{hdildof lngdhfhep blo|{l~
~|ng o~ gh~l o{`n|fola `d Mlis '?005)ug`ng nh|fa |dal{i`dl sh~~`kfl
`d~`eg~$ @d oaa``hd& gl o{`nfl `dle{ol~ ~lrl{of {lslookfl q|od`o`rl oda
q|of`o`rl lngd`q|l~ go o{l ulff l~okf`~gla `d gl lnhdhi`n~ hb `ddhro`hd
f`l{o|{l h o{{`rl o `~ `d~`eg~$ Qg`~ oss{hong s{hr`al~ o ih{l {lof`~`n|dal{~oda`de hb gl `ddhro`hd s{hnl~~ god odp ~`defl ilgha uh|fa kl
okfl h s{hr`al 'bh{ |~lb|f {lr`lu~ hb ilghahfhe`nof `~~|l~ `d gl ~|ap hb
lngdhfhe`nof `ddhro`hd& ~ll Nhgld " Flr`d ?070= ^ngihng " ^ngdh{`de
?001)$ B`e|{l > `ff|~{ol~ gl ro{`lp hb odofp~l~ nhda|nla bh{ g`~ o{`nfl
oda `da`nol~ gl s{`io{p `ddhro`rl on`r``l~ glp ~slom h$ Qgl aoo |~la `d
gl~l odofp~l~ o{l: 'o) \$^$ sold~ `d ^H
;
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;
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s{hnlla`de~& 'a) io{ml& sl{bh{iodnl& oda nh~ {lda~ 'bh{ nofn|fo`de
flo{d`de oda lwsl{`ldnl n|{rl~)& oda 'l) `dl{r`lu~ u`g `d|ld`of lwsl{~$
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bh{ lwoisfl& ilo~|{l `drld`rl on`r`p& k| glp o{l of~h `ish{od h gl
|dal{~oda`de hb oahs`hd oda a`bb|~`hd& o~ `drldh{~ ps`noffp fl sold~
klno|~l glp lwsln h io{ml gl`{ `drld`hd~$ [l~lo{ng fokh{oh{p on`r`p
~slom~ io`dfp h [A"A b|da`de& k| `~ of~h `ish{od bh{ |dal{~oda`de
gl uop~ ehrl{dild bon`f`ola mdhuflael {od~bl{ `d gl ^H
;
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|dal{~oda`de ngode`de {l~lo{ngl{ dluh{m~ hrl{ `il$ Flo{d`de n|{rl~
oda lwsl{`ldnl n|{rl~ khg {lln a`bb|~`hd 'io{ml {lda~)& k| of~h ~slom~lso{olfp h flo{d`dekpah`de oda gl b|ff `ddhro`rl s{hnl~~& {l~sln`rlfp$
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;
b{hi gl sh~
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~o`hd~ `d Fhdahd lisfhpla g`~ bh|{g& sh~nhik|~`hd {lihrof lngdhfhep
~{olep o~ bo{ konm o~ ?0;2& shul{sfod o`{ shff|`hd nhd{hf ~{ole`l~ g{h|eg
gl ?023~ eldl{offp lisgo~`zla l`gl{ gl {~ g{ll ~{ole`l~& h{ ~u`ng`de h
do|{offp fhul{~|fb|{ b|lf~$ ^`dnl go `il& gl bhn|~ go~ ~g`bla h sh~
nhik|~ hd nhd{hf lngdhfhe`l~gl bhn|~ hb g`~ o{ nflo~ ulff o~ b|lf ~u ng`de$
Sh~nhik|~`hd nhd{hf lngdhfhe`l~& hgl{u`~l mdhud o~ |l eo~ al~
|fb|{`zo`hd 'BEA) ~p~li~ h{ ~n{|kk`de lngdhfhe`l~& nhdon o sh~nhik|~`hd eo~ ~{loi u`g o ko~l {loeld 'h{ ~h{kld) `d od ok~h{kl{ `d
h{al{ h {lihrl ^H
;
$ Nhiil{n`offp oro`fokfl BEA lngdhfhe`l~ nod kl
nfo~~`la {~ o~ hdnlg{h|eg rl{~|~ {leldl{okfl s{hnl~~l~& oda gld o~
ul h{ a{p ~p~li~& alslda`de hd gl ih`~|{l flrlf hb gl uo~l iol{`of
oda gl |l eo~ flor`de gl ok~h{kl{$
5
Ugl{lo~ ul ~p~li~ nhis{`~l {h|egfp
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haop 'okh| ; sl{nld hb uh{fa noson`p& nofn|fola b{hi ^{`ro~oro ;333)$
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~`al{okfp ih{l lwsld~`rl god a{p ~p~li~= gl`{ ahi`dodnl {l~|f~ b{hi
gl`{ g`egl{ {lihrof lbn`ldn`l~& gl fo{el{ noson`p hb gl`{ ps`nof ossf`no
`hd~& oda gl `dl{sfop hb gl~l bonh{~ u`g ehrl{dild on`hd~$ Ul hdnl
g{h|eg BEA ~p~li~ |~`de f`il~hdl o~ gl ~n{|kk`de {loeld ahi`dol
`dl{do`hdoffp 'okh| 5; sl{nld hb uh{fa noson`p)$ Qgl f`il~hdl bh{nla
hw`ao`hd s{hnl~~ `~ s{lbl{{la= ` ioml~ sh~~`kfl {lf`okfl& 0< sl{nld - ^H
;
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7303 sl{nld ^H
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BEA ~p~li~ o{l |~la u`gh| oaa``hdof lngd`nof alo`f~& gl ~p~li~ `d
q|l~`hd ~gh|fa kl |dal{~hha o~ hdnlg{h|eg ul f`il~hdl BEA ~p~li~$
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>23 FOU " SHF@NP Os{ f ;332?
;33< Kofap Nldl{ bh{ Fou oda ^hn`of Shf`np oda Kfonmulff S|kf`~g`de Fa$
?073~ QRO& LSO Fok& HBL Qgl HBL klnoil gl ahi`dod s|kf n [A"A b|dal{&om`de hd gl ~|ssh{ hb gl QRO ^goudll bon`f`p
oda& `d Alnlikl{ ?07> s{`io{`fp h s{hr`al hha nhd{hf& dor`eo`hd&
oda lfln{`n shul{ 'QRO `~ gl fo{el~ s|kf`n shul{ nhisodp `d gl \$^$) `d gl Qlddl~~ll
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blal{of nh{sh{o`hd$k
Qg`~ fokh{oh{p go~ goa iodp doil~ hrl{ gl plo{~& `dnf|a`de gl Hbnl hb Ldl{ep& I`dl{of~&oda @da|~{p bh{ LSO~ Hbnl hb [l~lo{ng oda Alrlfhsild& gl @da|~{`ofLdr`{hdildof
[l~lo{ng Fokh{oh{p& gl O`{ oda Ldl{ep Lde`dll{`de [l~lo{ng Fokh{oh{p& oda gl Do`hdof
[`~m Iodoelild [l~lo{ng Fokh{oh{p `d gl O`{ Shff|`hd S{lrld`hd oda Nhd{hf A`r`~`hd$
Alnoal Io`d S|kf`n Onqh{~ G`egf`egq~
Qokfl ;$ Nhdq`d|la
nhd`d|la |`f`p {l~`~odnl h ~n{|kkl{~ oda |dnl{o`dp o~ h uglgl{ gl
lngdhfhepko~la ~odao{a nh|fa u`g~oda {lslola fleof l~~ '[oa`od
Nh{sh{o`hd ?073)$ B`e|{l < ~ghu~ o a{oio`n slom `d s|kf`n [A"A b|da`de
bh{ ^H; nhd{hf `d ~nof plo{ ?05
7/31/2019 Regulation as the Mother of Innovation - The Case of SO2 Control -- Taylor, Rubin, Hounshell
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7/31/2019 Regulation as the Mother of Innovation - The Case of SO2 Control -- Taylor, Rubin, Hounshell
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>22 FOU " SHF@NP Os{ f ;330 sl{
nld hb gl ro{`odnl '{; 9 3$>0) `~ lwsfo`dla kp ldonla fle`~fo`hd 'ug`ng
of~h `dnf|al gl ?0 NOO& oda gl ?025 O_O a|{`de
gl~l plo{~) sf|~ gl ?075 NOO Q{p$
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`d ^H; nhd{hf& gl aliodas|ff eldl{ola kp fle`~fo`hd({le|fo`hd oda gl
od`n`so`hd hb {le|fo`hd go~ o ih{l a`{ln lbbln hd `drld`rl on`r`p nos
|{la kp sold~ god ehrl{dildof lngdhfheps|~g on`r``l~$ O {le{l~~`hd
hb gl [A"A lwslda`|{l aoo |dal{fp`de B`e|{l < oeo`d~ gl nfo~~ko~la
sold aoo~l `d B`e|{l 2 lwsfo`d~ hdfp 1 sl{nld hb gl ro{`odnl '{; 9 3$31)&
oda ~`i`fo{ {le{l~~`hd~ oeo`d~ gl hof ok~{onko~la aoo~l oda gl ~|k
noleh{p hb sh~nhik|~`hd oda ~|ssflildof lngdhfhep sold~ of~h {lrlof
dlef`e`kfl nh{{lfo`hd~$?> Bh{ ih{l `dbh{io`hd hd ihalf`de alo`f oda gl~l
{le{l~~`hd {l~|f~& ~ll Qopfh{& [|k`d& oda Gh|d~glff 'bh{gnhi`de) odaQopfh{ ';33?)$ @d oaa``hd& hgl{ lr`aldnl& `dnf|a`de gl lngd`nof nhdld
odofp~`~ hb gl ^H; ^pish~`|i oda gl {l~shd~l~ hb `dl{r`lula lwsl{~&
~|ssh{~ gl s{hi`dldnl hb fle`~fo`rl({le|foh{p lrld~dhokfp do`hdof
~odao{a~`d `da|n`de `drld`rl on`r`p `d ^H; nhd{hf lngdhfhep 'Qop
fh{ ;33?)$ Qg`~ ~ ulff u`g gl da`de~ hb hgl{ no~l ~|a`l~& o~ a`~n|~~la
`d gl f`l{o|{l {lr`lu okhrl '~ll l$e$& O~gbh{a& Opl{~ " ^hdl ?073 sl{nld hb gl ~|fb|{) 'Qopfh{ ;33?)$ O~ ~lld `d B`e|{l 5& so
ld`de `d gl~l lngdhfhe`l~ e{lu {os`afp `d gl lo{fp ?053~& ugld ~odao{a~
offhula fhu~|fb|{ oda nflodla nhof~ h sfop o s{hi`dld {hfl o~ o nhisf`
odnl ~{olep bh{ khg dlu oda lw`~`de ~h|{nl~$ Qgl ~{`deld ?050 D^S^&
ghulrl{& ~`edofla go nflodla nhof~ uh|fa dh fhdel{ kl ~|bn`ld bh{ dlu
~h|{nl nhisf`odnl$ Sold`de flrlf~ {l~shdala onnh{a`defp& o~ `da`nola `d
B`e|{l 5 kp gl s{ln`s`h|~ alnf`dl `d s{lnhik|~`hd sold`de flrlf~ obl{
go lrld oda o~ ~|ssh{la kp gl {le{l~~`hd {l~|f~ a`~n|~~la okhrl$ @
osslo{~ go {l~lo{ngl{~ `dl{l~la `d gl ^H; nhd{hf io{ml ioal o aln`
~`hd go& ko~la hd gl ?050 D^S^& [A"A ahffo{~ uh|fa kl kll{ ~sld
hd sh~nhik|~`hd lngdhfhe`l~ u`g ih{l shul{b|f shld`of ^H; {lihrof
lbn`ldn`l~$?1 Qgl ~{`deldnp hb gl ?050 D^S^ g|~ obblnla gl lngdhfhep
soguop~ nhd~`al{la bh{ {l~lo{ng$ Dhl go gl ?003 NOO a`a dh {l~h{l
sold`de flrlf~ bh{ gl lngdhfhep$
K$ FLO[D@DE KP AH@DE
Onnh{a`de h `da|~{p odofp~~& BEA rldah{~ hbld `dnh{sh{ol dlu `alo~ `dh
dlu nhiil{n`of `d~offo`hd~& da`de go gl j|is b{hi gl `alo h gl b|ff
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Qopfh{& [|k`d " Gh|d~glff LDR@[HDILDQOF QLNGDHFHEP >25
;33< Kofap Nldl{ bh{ Fou oda ^hn`of Shf`np oda Kfonmulff S|kf`~g`de Fa$
~nofl {`of `~ `ish{od h lngdhfhe`nof `ddhro`hd 'In@fro`dl " O{alff
?057)$ Hdnl od BEA ~p~li `~ ossf`la h o shul{ sfod& ghulrl{& gl
{l~shd~`k`f`p bh{ `~ hsl{o`hd ehl~ h gl |`f`p shff|`hdnhd{hf hsl{oh{&
ugh hbld sfop~ od `ish{od `ddhro`rl {hfl kp ~hfr`de sh~oahs`hd
lngd`nof s{hkfli~$ Lo{fp ~n{|kkl{ ngoffldel~ s{`io{`fp {lfola h lw{lil
nh{{h~`hd oda {loeld s{ln`s`o`hd `d~`al gl ~p~li= s{ln`s`o`hd no|~la
sf|ee`de oda ~nof`de& ug`ng ~hil`il~ {lq|`{la om`de o |d` ahud obl{ o
blu aop~ hb hsl{o`hd~ `d h{al{ h ~ghrlf& jonmgoiil{& apdoi`l& h{ hgl{
u`~l nflo{ gl kfhnmoel$ Qgl~l ngoffldel~ nhd{`k|la h g`eg hsl{o`de oda
io`dldodnl nh~~ bh{ BEA ~p~li~= bh{ lwoisfl& hdl lwsl{ `dl{r`lula
bh{ g`~ sosl{ hfa hb o |`f`p go {le|fo{fp go~ o iha|fl hbbf`dl oda
~l{r`nl ` u`g`d uldpbh|{ gh|{~& |~`de okh| bh{p slhsfl `d o ~g`b h ah
a`bbl{ld jhk~ ~|ng o~ {lsfon`de dhzzfl~ h{ bod kfoal~$? sl{nld hb `~ h{`e`dof rof|l 'Qopfh{ ;33?)$ Qg`~ rof|l hb 7> sl{nld
`~ mdhud o~ gl s{he{l~~ {o`h& oda ` `~ nhiso{okfl h s{he{l~~ {o`h~
bh|da `d iodp hgl{ `da|~{`l~$ Ih~ hb gl hgl{ `da|~{`l~ go lwg`k` o
s{he{l~~ {o`h hb g`~ ~`zl ah dh ~go{l gl ~{hde ehrl{dild {hfl `d `ddhro
`hd go a`~`de|`~gl~ ldr`{hdildof lngdhfhep 'O{ehl ?000= @dl{do`hdof
Ldl{ep Oeldnp ;333)$
N$ UGL[L @DRLDQ@HD& OAHSQ@HD& ODA LWSL[@LDNL HRL[FOS
Qg`~ ~ln`hd bhn|~l~ hd gl ^H; ^pish~`|i& o ehrl{dild~shd~h{la nhd
bl{ldnl go gl LSO kleod b|da`de `d ?05>& {lio`d`de gl ~hfl b|dal{ |d`f
?07; ugld ` uo~ jh`dla kp gl Lfln{`n Shul{ [l~lo{ng @d~`|l 'LS[@)=
g`~ nh~shd~h{~g`s o{{odelild fo~la |d`f ?00? ugld gl AHL klnoil
gl g`{a nhb|dal{$ Qgl a`rl{~l lwsl{~ `dl{r`lula bh{ g`~ o{`nfl ~{hdefpoe{lla go gl ^H; ^pish~`|i uo~ l~~ld`of h gl lrhf|`hd hb BEA& o~ `
s{hihla bh{iof oda `dbh{iof mdhuflael lwngodel oihde |`f`p shff|`hd
nhd{hf hsl{oh{~& BEA rldah{~& ehrl{dild oda |d`rl{~`p {l~lo{ngl{~& oda
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>27 FOU " SHF@NP Os{ f ;3320
;33< Kofap Nldl{ bh{ Fou oda ^hn`of Shf`np oda Kfonmulff S|kf`~g`de Fa$
BEA ~p~li~ nhi`de hdf`dl& h gl sh`d ugl{l dlu BEA ~p~li~ haop
o{l {h|`dlfp al~`edla bh{ lbn`ldn`l~ `d gl {odel hb 0
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>53 FOU " SHF@NP Os{ f ;335?
;33< Kofap Nldl{ bh{ Fou oda ^hn`of Shf`np oda Kfonmulff S|kf`~g`de Fa$
R@$ SHF@NP @ISF@NOQ@HD^
Ofgh|eg g`~ no~l `~ hdfp gl {~ `d ugo u`ff kl o ~l{`l~ hb no~l~ go u`ff
s{hr`al od lis`{`nof ko~`~ bh{ eldl{of`zla `d~`eg~ okh| gl `d|ldnl hb
ehrl{dild on`hd~ hd ldr`{hdildof lngdhfhe`nof `ddhro`hd& gl{l o{l o
d|ikl{ hb shf`np `isf`no`hd~ go nod kl a{oud b{hi `~ da`de~ ofhdl$
Qg`~ ~ln`hd lwsfh{l~ ~hil hb gl~l `isf`no`hd~ oda |~l~ gli h b{oil gl
~|ap~ hrl{off da`de~$
B`{~& ` `~ `ish{od h {lnoff go gl {~ nhiil{n`of ~n{|kkl{~ ul{l k|`f
`d ?0;2 `d gl \d`la M`deahi& pl glp ul{l dh `isflildla nhiil{n`offp
`d gl \$^$ |d`f gl fol ?023~ 'gl {~ iojh{ sfod uh{m uo~ ahdl `d ?02 NOO& khg hb ug`ng
ul{l `d~{|ild~ ih{l hb lngdhfheps|~g god aliodas|ff$ Ofgh|eg lwsl{~
sh`d h gl `ish{odnl hb lngdhfheps|~g `d~{|ild~ ~|ng o~ blal{of
~|ssh{ hb gl ^H; ^pish~`|i `d a{`r`de gl lngdhfhep& ` `~ nflo{ go `d
^H; nhd{hf& lngdhfheps|~g& o~ ilo~|{la kp [A"A lwslda`|{l~& uo~
dh o~ `ish{od o~ aliodas|ff o~ od `da|nlild hb `drld`hd hd `~ uop
h nhiil{n`of ossf`no`hd& o~ ilo~|{la kp sold~$ U`gh| gl io{ml
~`i|fola kp ehrl{dild {le|fo`hd& sold`de on`r`p flrlf~ o{l lw{lilfp
fhu$ Qg`~ ilod~ go |d`f gl fol ?023~& gl s{`rol ~lnh{& ug`ng hud~ih~ sold~ `d ^H; nhd{hf lngdhfhe`l~& uo~ dh b|ffp ldeoela `d nhiil{
n`offp {lflrod `drld`hd uh{gp hb f`de sold ossf`no`hd~$ @ of~h ilod~
go gl hrl{off {l~lo{ng nhii|d`p goa hdl fl~~ s|kf`n ~h|{nl hb mdhuflael
h a{ou hd okh| dhrlf& |~lb|f& oda dhdhkr`h|~ `drld`hd~ `d g`~ lngdhfhep
o{lo$ @d oaa``hd& u`gh| gl io{ml ~`i|fola kp ehrl{dild {le|fo`hd&
hsl{o`de lwsl{`ldnl nh|fa dh nhd{`k|l |~lb|f `d~`eg~ `dh ghu h `is{hrl
gl lngdhfhep$
Qgl `isf`no`hd hb g`~ `~ go od [A"A oda uo` ldr`{hdildof shf`np
hdl go `drl~~ `d [A"A oda hgl{u`~l ahl~ dh {lq|`{l ldr`{hdildof
sl{bh{iodnl |d`f ldr`{hdildof lngdhfhe`l~ gorl io|{la`~ f`mlfp h
da ldr`{hdildof `is{hrlild~ l`gl{ o fhde `il `d nhi`de h{ alsldald
hd gl `ddhro`rl on`r``l~ hb hgl{ do`hd~$ Qgl ~lnhda hb gl~l h|nhil~&
ug`fl ih{l `ilfp oda fhu nh~ h \$^$ shff|l{~& `~ |df`mlfp h kl gl kl~
lnhdhi`n ~hf|`hd bh{ gl nh|d{p& o~ ` ilod~ go hgl{ do`hd~ u`ff nos|{l
gl ~s`ffhrl{~ hb ugolrl{ `ddhro`hd~ o{l `da|nla `d g`~ o{ldo$
Ul ~ou& hh& go `da|~{p~ od`n`so`hd hb ldr`{hdildof {le|fo`hd&
dh j|~ gl lw`~ldnl hb {le|fo`hd `~lfb& of~h a{`rl~ `ddhro`hd$ Ahl~ g`~
~|eel~ go od ldr`{hdildof shf`np hb alf`kl{ol |dnl{o`dp uh|fa
offhu gl \$^$ h nos|{l ~hil hb gl~l ~s`ffhrl{~ u`gh| shff|l{~ gor`deh ioml o~ g`eg `drl~ild~ `d ldr`{hdildof lngdhfhep o~ `d no~l~ hb {|l
ldr`{hdildof {le|fo`hd8 Bh{ lwoisfl& gl ehrl{dild nh|fa alf`kl{olfp
bh~l{ o ~`|o`hd ~|ng o~ lw`~la `d gl ?073~& ugld gl {lslola `d{ha|n`hd
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>5; FOU " SHF@NP Os{ f ;33) sh`d~ h|& ~|ng `d~{|ild~
s{hr`al lq|of ilo~|{l hb |dal{nhisf`odnl oda hrl{nhisf`odnl `dnld`rl~&`da|n`de fl~~ `ddhro`hd god o sl{bh{iodnlko~la ~odao{a `d ug`ng lrl{phdl
go~ od `dnld`rl h nhisfp$;;
Qg`{a& ` ~gh|fa kl ~{`deld ldh|eg go ` nod oml oarodoel hb gl hfa
oaoel go Dlnl~~`p `~ gl ihgl{ hb `drld`hd$ [le|foh{p ~{`deldnp&
o~ `ff|~{ola `d gl ^H; no~l& `~ `la h `dn{lo~la nhffokh{o`hd u`g`d gl
{l~lo{ng nhii|d`p on{h~~ h{eod`zo`hdof psl~$ @ `~ of~h `la h `dn{lo~la
sold`de lisgo~`~ hd ofl{do`rl lngdhfhe`l~a{p BEA oda ~h{kld
`djln`hd rl{~|~ fhushld`of s{lnhik|~`hd lngdhfhe`l~h ill lw`~`de
oda od`n`sola ~odao{a~$ Fo~fp& ` ~gh|fa |~l od`n`so`hd h `~ oarod
oel kp iodoe`de |dnl{o`dp& sl{gos~ kp al~`ed`de ~odao{a~ h kl {lr`~
`la sl{`ha`noffp '~op lrl{p rl plo{~)$ Qgl lwslno`hd uh|fa kl go gl~l
~odao{a~ uh|fa ~{ldegld `d f`eg hb lngd`nof oarodnl~& oda gl `l{o`rl
~odao{a~l`de s{hnl~~ uh|fa s{hr`al o 'ih{l) nhd`d|h|~ `dnld`rl bh{
`ddhro`hd$
io{eo{lq qopfh{`~ o~~`~od s{hbl~~h{ o gl Ehfaiod ^nghhf hb S|kf`n Shf`np o gl
\d`rl{~`p hb Nof`bh{d`o& Kl{mlflp$ Gl{ {l~lo{ng |~l~ h{eod`zo`hd glh{p& lnhdhi`n~&g`~h{p& oda lde`dll{`de h lwsfh{l gl lbbln hb ehrl{dild on`hd~ hd `ddhro`hd `dldr`{hdildof nhd{hf oda {ldluokfl ldl{ep lngdhfhe`l~$ Gl{ konme{h|da `dnf|al~fleof oda Nos`hf G`ff lwsl{`ldnl `d gl o{lo~ hb `dl{do`hdof {oal& ldl{ep& oda glldr`{hdild$
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Qopfh{& [|k`d " Gh|d~glff LDR@[HDILDQOF QLNGDHFHEP >5>
;33< Kofap Nldl{ bh{ Fou oda ^hn`of Shf`np oda Kfonmulff S|kf`~g`de Fa$
lauo{a ~$ {|k`d `~ s{hbl~~h{ o No{dle`l Ilffhd \d`rl{~`p$ G`~ {l~lo{ng `~ `d glo{lo~ hb ldr`{hdildof nhd{hf& ldl{ep |`f`zo`hd& oda lngdhfhepshf`np `dl{on`hd~$Gl `~ on`rlfp `drhfrla `d ~lrl{of fo{el~nofl o~~l~~ild~ hb do`hdof shf`np `~~|l~$ Qgl~l`dnf|al ldl{ep ["A sfodd`de oda efhkof nf`iolngodel i``eo`hd hs`hd~& `dnf|a`de
`~~|l~ hb no{khd iodoelild$
aor`a o$ gh|d~glff`~ s{hbl~~h{ o No{dle`l Ilffhd \d`rl{~`p$ Gl `~ {o`dla `d khglde`dll{`de oda g`~h{p& oda ~|a`l~ `ddhro`hd o gl `dl{~ln`hd hb ~n`ldnl& lngdhfhep&oda `da|~{p$ S{hbl~~h{ Gh|d~glff~ uh{m `dnf|al~ lwld~`rl ~|a`l~ hb `da|~{`of{l~lo{ng oda alrlfhsild& gl alrlfhsild hb iod|bon|{`de lngdhfhep `d gl \d`la^ol~& oda gl {hfl hb `dalsldald `drldh{~ oda ld{ls{ldl|{~ `d gl alrlfhsild hblngdhfhep$
DHQL^
?$ Bh{ lwoisfl& gl io{ml go shff|`hd nhd{hf lngdhfhe`l~ ~o`~bp `~ b|ffpaldla kp ehrl{dild& o~ gl lngdhfhe`l~ s{ha|nl dh lnhdhi`noffp rof|okflehha `d oda hb gli~lfrl~$ Qgl io{ml go ofl{do`rl ldl{ep lngdhfhe`l~~o`~bp& hd gl hgl{ goda& `~ ~gosla kp o ih{l lq|of nhik`do`hd hb gls{`rolfp rof|la oda s|kf`nfp rof|la ngo{onl{`~`n~ hb gl ldl{ep glp s{hr`al=~|ng s{`rolfp rof|la ngo{onl{`~`n~ `dnf|al nh~& oro`fok`f`p& oda hgl{ sl{bh{iodnl o{`k|l~ hb ldl{ep& ug`fl gl`{ s|kf`nfp rof|la ngo{onl{`~`n `~ gl`{`ison hd gl ldr`{hdild$
;$ Qgl `~~|l `~ ~o{ de h ioml `d{hoa~ `d gl ldr`{hdildof lngdhfhep `ddhro`hd f`l{o|{l& ghulrl{& g{h|eg o{`nfl~ f`ml Fh`l{ oda Dh{kl{eKhgi '?000)$
>$ Sl{bh{iodnlko~la ~odao{a~ o{l gl dh{i `d {oa``hdof ldr`{hdildof {le|fo`hd& u`g iodp ~o|h{p s{hr`~`hd~ ~lrl{lfp {l~{`n]`deY LSO~ o|gh{`p h ~sln`bpiodaoh{p nhisf`odnl ilgha~ 'A{`l~ld ;33>:
7/31/2019 Regulation as the Mother of Innovation - The Case of SO2 Control -- Taylor, Rubin, Hounshell
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>51 FOU " SHF@NP Os{ f ;33$Mllg& [$ J$& S$ O$ @{lfoda& oda [$ L$ Ih~l{ '?072) Lnhdhi`n Lrof|o`hd hbQuldpBh|{ BEA ^p~li~$ Sosl{ s{l~ldla o gl ^H; Nhd{hf ^pish~`|i&Ofodo Dhrlikl{$
Mllg& [$ J$& S$ O$ @{lfoda& oda S$ Q$ [oanf`bbl '?003) ?003 \saol hb BEAlnhdhi`n lrof|o`hd~$ Sosl{ s{l~ldla o gl ^H; Nhd{hf ^pish~`|i& DluH{flod~$
Mllg& [$ J$& S$ O$ @{lfoda& oda S$ Q$ [oanf`bbl '?00?) Lnhdhi`n Lrof|o`hd hbQuldpL`eg BEA S{hnl~~l~$ Sosl{ s{l~ldla o gl ^H; Nhd{hf ^pish~`|i&Uo~g`dehd& A$N$& Iop$
Mlis& [$ '?005) Ldr`{hdildof Shf`np oda Qlngd`nof Ngodel: O Nhiso{`~hd hb glQlngdhfhe`nof @ison hb Shf`np @d~{|ild~$ Nglfldgoi& \M: Lauo{a Lfeo{$
Mdll~l& O$ R$& oda N$ F$ ^ng|fzl '?05
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Qopfh{& [|k`d " Gh|d~glff LDR@[HDILDQOF QLNGDHFHEP >55
;33< Kofap Nldl{ bh{ Fou oda ^hn`of Shf`np oda Kfonmulff S|kf`~g`de Fa$
[oa`od Nh{sh{o`hd '?073) ^|ap hb O`{ Shff|`hd Nhd{hf Qlngdhfhep: No~l ^|a`l~hb O`{ Shff|`hd Nhd{hf Qlngdhfhep @ddhro`hd~& B`dof Qo~m @@ [lsh{$ Uo~g`dehd&A$N$: Do`hdof Nhii`~~`hd hd O`{ _|of`p$
[`ldgh|~l& [$ N$ '?00;) On`hd K|`fa~ hd ?003 Nflod O`{ On Nhisf`odnl& Shul{
Lde`dll{`de0
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>57 FOU " SHF@NP Os{ f ;33