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Economics and Air Pollution

In: Air Quality - Measurement and Modeling

Author

Listed:
  • Fernando Carriazo

Abstract

This chapter discusses the relationship between economics and air pollution: first, it presents the main characteristics of the economic growth-environmental pressure debate and introduces the concept of environmental Kuznets curve hypothesis (EKC). As an example of the EKC, the estimated relationship between CO2 emissions and economic growth, using a cross-sectional sample of 152 countries, is reported. Second, the chapter discusses air pollution as a result of a market failure and introduces the main theoretical causes of ambient degradation, acknowledging air pollution externalities as a common problem that leads to overexploitation in the absence of well-defined property rights for the atmosphere. Third, the main instruments for pollution control, including traditional regulation based on standards and the more flexible incentive-based regulation, are presented. Finally, the chapter reviews the main features of cost and benefits related to air pollution emissions.

Suggested Citation

  • Fernando Carriazo, 2016. "Economics and Air Pollution," Chapters, in: Philip John Sallis (ed.), Air Quality - Measurement and Modeling, IntechOpen.
    • Handle: RePEc:ito:pchaps:106285
    DOI: 10.5772/65256
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    File URL: https://www.intechopen.com/chapters/52560
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    Cited by:

    1. Pandey, Rita & Kedia, Shailly & Malhotra, Anuja, 2020. "Addressing Air Quality Spurts due to Crop Stubble Burning during COVID19 Pandemic: A case of Punjab," Working Papers 20/308, National Institute of Public Finance and Policy.

    More about this item

    Keywords

    air pollution; air quality; incentive-based regulations; transferable permits; air quality standards; cost-benefit analysis;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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