Using Spatial Econometrics to Measure Ozone Pollution Externalities

C.-Y. Cynthia Lin

Agricultural and Resource Economics, University of California at Davis, Davis, USA.

DOI: 10.4236/jep.2012.329130                

Abstract

This paper summarizes my previous work in Lin (2010), in which I use spatial econometrics to analyze air pollution externalities. In Lin (2010), 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 determining local ozone air quality, although owing to non-monotonicities in ozone production the externality is not always negative. Because the origin of emissions matters, results also reject a non-spatially differentiated NO_x cap and trade program as an appropriate mechanism for reducing ozone smog.

Keywords

Air Pollution; Externalities; Spatial Econometrics

Conflicts of Interest

The authors declare no conflicts of interest.

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