A Spatial Econometric Approach to Measuring Pollution Externalities: An Application to Ozone Smog
This paper uses spatial econometrics to analyze air pollution externalities. State-by-state source-receptor transfer coefficients that can be used as a basis for a location-differentiated permit system are estimated. Results affirm the importance of regional transport in determin-ing local ozone air quality, although owing to non-monotonicities in ozone production the ex-ternality is not always negative. Because the origin of emissions matters, results also reject a non-spatially differentiated NOx cap and trade program as an appropriate mechanism for re-ducing ozone smog.
Volume (Year): 40 (2010)
Issue (Month): 1 ()
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- Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Spatial Patterns of Technology Diffusion: An Empirical Analysis using TFP," Tinbergen Institute Discussion Papers 04-079/3, Tinbergen Institute.
- J. E. Stiglitz, 1999. "Introduction," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 28(3), pages 249-254, November.
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