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The Incidence of Pollution Control Policies

Author

Listed:
  • 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.

Suggested Citation

  • Ian Parry & Hilary Sigman & Margaret Walls & Roberton Williams, 2005. "The Incidence of Pollution Control Policies," Departmental Working Papers 200504, Rutgers University, Department of Economics.
  • Handle: RePEc:rut:rutres:200504
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    Keywords

    Environment; Distributional effects;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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