Shadow Market Area for Air Pollutants
AbstractThis study identifies the shadow market area of air pollutants based on the Gaussian plume model. Since pollutants are dispersed by wind, transport costs are irrelevant in its formation. Pollutant distribution on the ground level has an asymmetric bell-shape in the wind direction. Apart from the linear functions, the exponential and quadratic shadow price functions are considered for the compensation of health hazard of consumers, when the strict liability in the framework of Coase theorem applies. The shadow market area for pollutants is shell-shaped. This specific characteristic has an implication for market boundaries between polluters and their location decisions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa06p412.
Date of creation: Aug 2006
Date of revision:
Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org
Other versions of this item:
- David Meintrup & Chang Woon Nam, 2009. "Shadow market area for air pollutants," Environment and Planning B: Planning and Design, Pion Ltd, London, Pion Ltd, London, vol. 36(4), pages 664-681, July.
- NEP-ALL-2007-01-14 (All new papers)
- NEP-ENE-2007-01-14 (Energy Economics)
- NEP-ENV-2007-01-14 (Environmental Economics)
- NEP-GEO-2007-01-14 (Economic Geography)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Petrakis, Emmanuel & Xepapadeas, Anastasios, 2003. "Location decisions of a polluting firm and the time consistency of environmental policy," Resource and Energy Economics, Elsevier, Elsevier, vol. 25(2), pages 197-214, May.
- Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 30(2), pages 675-740, June.
- Abdullah Dasci & Gilbert Laporte, 2004. "Location and Pricing Decisions of a MultiStore Monopoly in a Spatial Market," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 44(3), pages 489-515.
- Bernard M.S. van Praag & B.E. Baarsma, 2000. "The Shadow Price of Aircraft Noise Nuisance," Tinbergen Institute Discussion Papers, Tinbergen Institute 00-004/3, Tinbergen Institute.
- Siebert, Horst, 1981. "Praktische Schwierigkeiten bei der Steuerung der Umweltnutzung über Preise," Open Access Publications from Kiel Institute for the World Economy, Kiel Institute for the World Economy (IfW) 3581, Kiel Institute for the World Economy (IfW).
- Jesse Schwartz & Robert Repetto, 2000. "Nonseparable Utility and the Double Dividend Debate: Reconsidering the Tax-Interaction Effect," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 15(2), pages 149-157, February.
- Bernard M.S. van Praag & B.E. Baarsma, 2000.
"The Shadow Price of Aircraft Noise Nuisance,"
Tinbergen Institute Discussion Papers, Tinbergen Institute
00-004/3, Tinbergen Institute.
- Bernard M.S. van Praag & B.E. Baarsma, 2001. "The Shadow Price of Aircraft Noise Nuisance," Tinbergen Institute Discussion Papers, Tinbergen Institute 01-010/3, Tinbergen Institute.
- Williams III, Roberton C., 2003. "Health effects and optimal environmental taxes," Journal of Public Economics, Elsevier, Elsevier, vol. 87(2), pages 323-335, February.
- Dixit, Avinash & Olson, Mancur, 2000. "Does voluntary participation undermine the Coase Theorem?," Journal of Public Economics, Elsevier, Elsevier, vol. 76(3), pages 309-335, June.
- Drezner, Zvi & Wesolowsky, George O., 1996. "Location-allocation on a line with demand-dependent costs," European Journal of Operational Research, Elsevier, Elsevier, vol. 90(3), pages 444-450, May.
- Soderholm, Patrik & Sundqvist, Thomas, 2003. "Pricing environmental externalities in the power sector: ethical limits and implications for social choice," Ecological Economics, Elsevier, Elsevier, vol. 46(3), pages 333-350, October.
- Katherine Falconer & Pierre Dupraz & Martin Whitby, 2001. "An Investigation of Policy Administrative Costs Using Panel Data for the English Environmentally Sensitive Areas," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 52(1), pages 83-103.
- Kohlberg, Elon & Novshek, William, 1982. "Equilibrium in a simple price-location model," Economics Letters, Elsevier, Elsevier, vol. 9(1), pages 7-15.
- Eytan Sheshinski, 2002.
"On Atmosphere Externality and Corrective Taxes,"
Discussion Paper Series, The Center for the Study of Rationality, Hebrew University, Jerusalem
dp328, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- McCann, Laura & Colby, Bonnie & Easter, K. William & Kasterine, Alexander & Kuperan, K.V., 2005. "Transaction cost measurement for evaluating environmental policies," Ecological Economics, Elsevier, Elsevier, vol. 52(4), pages 527-542, March.
- Shaik, Saleem & Helmers, Glenn A. & Langemeier, Michael R., 2002. "Direct And Indirect Shadow Price And Cost Estimates Of Nitrogen Pollution Abatement," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 27(02), December.
- Sakari Uimonen, 2001. "The insufficiency of Pigouvian taxes in a spatial general equilibrium model," The Annals of Regional Science, Springer, Springer, vol. 35(2), pages 283-298.
- Steven Shavell, 1983. "Liability for Harm Versus Regulation of Safety," NBER Working Papers 1218, National Bureau of Economic Research, Inc.
- Gustafsson, Bo, 1998. "Scope and limits of the market mechanism in environmental management," Ecological Economics, Elsevier, Elsevier, vol. 24(2-3), pages 259-274, February.
- Eskeland, Gunnar S, 1994. "A Presumptive Pigovian Tax: Complementing Regulation to Mimic an Emissions Fee," World Bank Economic Review, World Bank Group, World Bank Group, vol. 8(3), pages 373-94, September.
- Louis Kaplow & Steven Shavell, 1999.
"Economic Analysis of Law,"
NBER Working Papers
6960, National Bureau of Economic Research, Inc.
- Koop, Gary & Tole, Lise, 2004. "Measuring the health effects of air pollution: to what extent can we really say that people are dying from bad air?," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 30-54, January.
- Jacek Cukrowski & Manfred M. Fischer, 2000. "Theory of Comparative Advantage: Do Transportation Costs Matter?," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 40(2), pages 311-322.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).
If references are entirely missing, you can add them using this form.