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The Incidence of Pollution Control Policies

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  • Ian Parry

    ()
    (Resources for the Future)

  • Hilary Sigman

    ()
    (Rutgers University and NBER)

  • Margaret Walls

    ()
    (Resources for the Future)

  • Roberton Williams

    ()
    (University of Texas at Austin and NBER)

Abstract

This paper explores the distribution of costs and benefits of pollution control policies across income groups. It begins by providing a conceptual framework for understanding and measuring the burden on different income groups from the costs of alternative emissions control instruments. It then summarizes various empirical studies on how the costs of emissions taxes, emissions permits, and command and control policies are distributed across households. Turning to benefits, it discusses literature on the distribution of existing pollution costs and the implications of these results for the distribution of benefits from environmental policies. Finally, it considers three ways in which distributional considerations might be integrated into traditional cost/benefit analyses of environmental policies.

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Bibliographic Info

Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200504.

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Date of creation: 11 May 2005
Date of revision:
Handle: RePEc:rut:rutres:200504

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Keywords: Environment; Distributional effects;

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  2. Matthew Riddle & James Boyce, 2007. "Cap and Dividend: How to Curb Global Warming while Protecting the Incomes of American Families," Working Papers wp150, Political Economy Research Institute, University of Massachusetts at Amherst.
  3. Kverndokk, Snorre & Rose, Adam, 2008. "Equity and Justice in Global Warming Policy," International Review of Environmental and Resource Economics, now publishers, vol. 2(2), pages 135-176, October.
  4. Don Fullerton, 2008. "Distributional Effects of Environmental and Energy Policy: An Introduction," NBER Working Papers 14241, National Bureau of Economic Research, Inc.
  5. Eskeland, Gunnar S. & Mideksa, Torben K., 2008. "Transportation fuel use, technology and standards: The role of credibility and expectations," Policy Research Working Paper Series 4695, The World Bank.
  6. Burtraw, Dallas & Sweeney, Richard & Walls, Margaret, 2008. "The Incidence of U.S. Climate Policy: Where You Stand Depends on Where You Sit," Discussion Papers dp-08-28, Resources For the Future.
  7. Parry, Ian W.H. & Timilsina, Govinda R., 2009. "Pricing externalities from passenger transportation in Mexico city," Policy Research Working Paper Series 5071, The World Bank.
  8. Abdelkrim Araar & Yazid Dissou & Jean-Yves Duclos, 2008. "Household Incidence of Pollution Control Policies: A Robust Welfare Analysis Using General Equilibrium Effects," Working Papers 0805E, University of Ottawa, Department of Economics.
  9. Corbett A. Grainger & Charles D. Kolstad, 2009. "Who Pays a Price on Carbon?," NBER Working Papers 15239, National Bureau of Economic Research, Inc.
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  11. Aldy, Joseph E. & Ley, Eduardo & Parry, Ian W.H., 2008. "A Tax-Based Approach to Slowing Global Climate Change," Discussion Papers dp-08-26, Resources For the Future.
  12. Burtraw, Dallas & Sweeney, Richard & Walls, Margaret, 2009. "The Incidence of U.S. Climate Policy: Alternative Uses of Revenues from a Cap-and-Trade Auction," Discussion Papers dp-09-17-rev, Resources For the Future.
  13. Grainger, Corbett A., 2012. "The distributional effects of pollution regulations: Do renters fully pay for cleaner air?," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 840-852.
  14. Coxhead, Ian & Chan, Nguyen Van, 2011. "Vietnam's New Environmental Tax Law: What Will It Cost? Who Will Pay?," Staff Paper Series 561, University of Wisconsin, Agricultural and Applied Economics.
  15. repec:hal:ciredw:hal-00866409 is not listed on IDEAS
  16. Anni Huhtala & Eija Pouta, 2009. "Benefit Incidence of Public Recreation Areas—Have the Winners Taken Almost All?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(1), pages 63-79, May.
  17. Coxhead, Ian & Wattanakuljarus, Anan & Nguyen, Chan V., 2013. "Are Carbon Taxes Good for the Poor? A General Equilibrium Analysis for Vietnam," World Development, Elsevier, vol. 51(C), pages 119-131.

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