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Dirty neighbors: Pollution in an interlinked world

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  • Miguel A. Meléndez-Jiménez

    (Department of Economics, University of Málaga)

  • Arnold Polanski

    (School of Economics, University of East Anglia)

Abstract

We apply a network approach to analyze individual and aggregate consumption that generates predominately local pollution (e.g., noise, water and air quality, waste disposal sites). This allows us to relate the individual pollution levels to network centralities and to design policy measures aimed at reducing the aggregate contamination. We then apply our theoretical framework to analyze the European data on fossil fuel energy consumption and discuss possible transfer schemes that, according to our model, would result in lower aggregate levels of pollution in the EU.

Suggested Citation

  • Miguel A. Meléndez-Jiménez & Arnold Polanski, 2018. "Dirty neighbors: Pollution in an interlinked world," Working Papers 2018-06, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    • Handle: RePEc:mal:wpaper:2018-6
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    More about this item

    Keywords

    local pollution; negative externalities; networks;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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