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Examining Trends of Criteria Air Pollutants: Are the Effects of Governmental Intervention Transitory?

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  • Junsoo Lee

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  • John List

Abstract

Despite its growth in other areas of economics,time series econometric methods have not beenwidespread in the area of environmental andresource economics. We illustrate one use oftime series methods by examining the time pathof US nitrogen oxide (NO x ) emission dataover the period 1900–1994. The analysishighlights that proper time series methods canaid in optimal regulatory policy as well asdeveloping empirical verification of theoriesput forth to explain economic phenomena. Inaddition, several interesting results emerge. First, we find that the emissions seriescontains both a permanent and random component. Second, if one attributed all of the emissionsreductions to regulatory policy, interventionanalysis suggests that the 1970 Clean Air Act(CAA) did not merely have transitory effects,but permanently influenced the NO x emission path. In terms of total regulatoryimpact, an upper bound on the emissions saveddue to the 1970 CAA is in the range of27%–48%. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Junsoo Lee & John List, 2004. "Examining Trends of Criteria Air Pollutants: Are the Effects of Governmental Intervention Transitory?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(1), pages 21-37, September.
  • Handle: RePEc:kap:enreec:v:29:y:2004:i:1:p:21-37
    DOI: 10.1023/B:EARE.0000035427.22165.3b
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    Cited by:

    1. Cherniwchan, Jevan, 2012. "Economic growth, industrialization, and the environment," Resource and Energy Economics, Elsevier, vol. 34(4), pages 442-467.
    2. David I. Stern, 2005. "The Effect of NAFTA on Energy and Environmental Efficiency in Mexico," Rensselaer Working Papers in Economics 0511, Rensselaer Polytechnic Institute, Department of Economics.
    3. repec:dau:papers:123456789/6801 is not listed on IDEAS
    4. T. Verbeke & M. De Clercq, 2004. "The Environmental Kuznets Curve: some really disturbing Monte Carlo evidence," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/242, Ghent University, Faculty of Economics and Business Administration.
    5. Massimiliano Mazzanti & Antonio Musolesi, 2011. "Income and time related effects in EKC," Working Papers 201105, University of Ferrara, Department of Economics.
    6. Massimiliano Mazzanti & Antonio Musolesi, 2010. "Carbon Abatement Leaders and Laggards Non Parametric Analyses of Policy Oriented Kuznets Curves," Working Papers 2010.149, Fondazione Eni Enrico Mattei.
    7. Mazzanti, M. & Musolesi, A., 2013. "Economic development and CO2 emissions: assessing the effect of policy and energy time events for advanced countries," Working Papers 2013-11, Grenoble Applied Economics Laboratory (GAEL).
    8. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    9. Wang, Juan & Zhang, Kezhong, 2014. "Convergence of carbon dioxide emissions in different sectors in China," Energy, Elsevier, vol. 65(C), pages 605-611.
    10. Verbeke, Tom & De Clercq, Marc, 2006. "The income-environment relationship: Evidence from a binary response model," Ecological Economics, Elsevier, vol. 59(4), pages 419-428, October.
    11. Massimiliano Mazzanti & Antonio Musolesi, 2012. "Breaking Environmental Kuznets Curves. Evaluating Energy and Policy Time Events Effects on CO2 Trends for Advanced Countries," Working Papers 201214, University of Ferrara, Department of Economics.
    12. Romero-Ávila, Diego, 2008. "Convergence in carbon dioxide emissions among industrialised countries revisited," Energy Economics, Elsevier, vol. 30(5), pages 2265-2282, September.
    13. Rafael Morales-Lage & Aurelia Bengochea-Morancho & Mariam Camarero & Inmaculada Martínez-Zarzoso, 2017. "Stochastic and club convergence of sectoral CO2 emissions in the European Union," Working Papers 2017/01, Economics Department, Universitat Jaume I, Castellón (Spain).

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