Trade''s Dynamic Solutions to Transboundary Pollution

This study develops a differential game to examine the effects of trade liberalization on transboundary water pollution. Water pollution is due to wastewater emissions from countries in a shared waterway along the U.S.–Mexico border with available data of pollution abatement costs, public health damages, and trade benefits. Noncooperative and cooperative games are examined with changes in trade policy and public health damages. Results show trade liberalization leads Mexico to curtail pollution in both games. Cooperation and trade liberalization limit emissions from both countries and curtail strategic behavior of the United States from Mexico's pollution control efforts in the noncooperative game.     

Optimal pollution permit endowments in markets with endogenous emissions

In a permit market with endogenous emissions, both firms and citizens purchase permits. Presented here are static and dynamic models of pollution permit markets with endogenous emissions. The optimal permit endowments are characterized when the regulator faces uncertainty about damages and uncertainty about the severity of the citizens’ collective action problem. Due to the possibility of learning over time, the regulator issues a larger number of permits in the first period of the dynamic model than in the static model.     

The optimal pricing of pollution when enforcement is costly

We consider the pricing of a uniformly mixed pollutant with a model of optimal, possibly firm-specific, emissions taxes and their enforcement under incomplete information about firms’ abatement costs, enforcement costs, and pollution damage. We argue that optimality requires an enforcement strategy that induces full compliance by every firm, except possibly when a regulator can base the probabilities of detecting individual violations on observable correlates of violators’ actual emissions. Moreover, optimality requires discriminatory taxes, except when a regulator is unable to use observable firm-level characteristics to gain some information about the variation in firms’ abatement costs or monitoring costs.     

An empirical analysis of economic strategies for controlling air pollution

In evaluating current environmental protection policy, economists often note that current regulations are more costly than necessary to meet environmental quality standards. While the a priori case is strong that current regulatory approaches are resulting in higher-than-necessary costs to attain environmental standards, there is relatively little empirical evidence to support this claim. The purpose of this paper is to supply some of the missing evidence by presenting the results of one study that assesses some of the potential savings associated with implementing economic, rather than command-and-control, regulatory approaches to abate one type of air pollution in one region of the country. Specifically, the paper examines the costs of meeting a prospective short-term standard for nitrogen dioxide under a range of alternative emissions control strategies for stationary sources of nitrogen oxide emissions in the Chicago Air Quality Control Region. The alternative strategies that are considered range from those that might result under current regulatory policy to those that economic policy approaches (such as emissions charges or marketable permits) are designed to implement. The analysis shows that the most efficient program of emissions controls may be more than an order of magnitude less costly than current regulatory strategies, and that economic approaches have additional advantages over more conventional regulatory approaches.     

The optimality and feasibility of uniform air pollution controls

An optimal control problem is developed which minimizes both the social damages of pollution concentrations and the private costs of emission abatement subject to a differential equation relating emissions and concentrations. A specific use of the model is to analyze the optimality and feasibility of uniform controls on emissions and concentrations across an air shed.     

A decomposition analysis of CO2 emissions: evidence from Malaysia’s tourism industry

The most important question raised from issues of environmental degradation is how economic activities bring about changes that will result in pollution. In the pursuit of tourism economy, contrary to popular interest, the travel and tourism (T&T) industry may cause environmental damages through the emissions of carbon dioxide (CO₂) from energy consumption in areas such as transportation and delivery of amenities. Given this major concern, this paper attempts to investigate the linkage between tourism and CO₂ emissions in Malaysia between 1981 and 2011. In particular, this study fills the knowledge gap by taking a closer look at the impact of international tourist arrivals on CO₂ emissions by sector – electricity and heat generation and transport. Results from the bound test method suggest that there exists a long-run relationship among the variables under consideration when CO₂ emissions become the dependent variable. The original result is similarly robust to alternatives, which are CO₂ emissions from sectors of electricity and heat generation and transport. Furthermore, the vector error correction model causality analysis indicates a causal relationship between tourism and CO₂ emissions by transport and electricity and heat generation. Subsequently, several tourism-related policies are drawn from these findings.     

Fuel switching,gasoline price controls,and the leaded-unleaded gasoline price differential

The Environmental Protection Agency and others have opposed gasoline price decontrol, alleging a wider posted price differential between leaded and unleaded grades would result, inducing more motorists to switch illegally to leaded gasoline fouling catalytic converters and hence increasing air pollution. EPA's model must assume that only the unleaded price ceiling is binding. It is shown that the resulting excess demand is shifted to a close substitute: leaded gasoline. Hence, controls cause more consumption of leaded fuel in new cars (switching) and more pollution. Thus, decontrol would have a palliative effect, contrary to EPA's claim.     

A political economy model of implementing pollution laws

A model of the implementation process as applied in pollution control is developed. It differs from previous bureaucracy models in that it subjects the control agency to pressures from both firms and procontrol citizen groups. Each of these three actors maximizes utility over environmental quality and some other variable. Environmental quality may be in the actor's preference function or it may represent derived demand. Working through the agency budget and other policy variables, each actor constrains another actor's attempts to move policy in preferred directions. This results in movement toward a concensus environmental quality, not necessarily the efficient quality. Several institutional changes are analyzed to demonstrate the workings of the model.     

Some political aspects of pollution control

In this paper some principles of optimal control theory are applied to an examination of the possible differences that political and economic decisions making may have in the area of pollution control. The main points are that (1) Pollution Control Boards (PCB's) may behave as though they place weights on control and benefit functions that differ from market determined weights, (2) divergencies between political and market weights impose welfar; losses, and (3) given that PCB's may be succeeded by another board the current PCB may adapt its behavior to counteract or enforce the expected future behavior of the new PCB.     

Achievements,challenges and global implications of China’s carbon neutral pledge

China has been committed to achieving carbon neutrality by 2060. China’s pledge of carbon neutrality will play an essential role in galvanising global climate action, which has been largely deferred by the Covid-19 pandemic. China’s carbon neutrality could reduce global warming by approximately 0.2–0.3 °C and save around 1.8 million people from premature death due to air pollution. Along with domestic benefits, China’s pledge of carbon neutrality is a “game-changer” for global climate action and can inspire other large carbon emitters to contribute actively to mitigate carbon emissions, particularly countries along the Belt and Road Initiative (BRI) routes. In order to achieve carbon neutrality by 2060, it is necessary to decarbonise all sectors in China, including energy, industry, transportation, construction, and agriculture. However, this transition will be very challenging, because major technological breakthroughs and large-scale investments are required. Strong policies and implementation plans are essential, including sustainable demand, decarbonizing electricity, electrification, fuel switching, and negative emissions. In particular, if China can peak carbon emissions earlier, it can lower the costs of the carbon neutral transition and make it easier to do so over a longer time horizon. China’s pledge of carbon neutrality by 2060 and recent pledges at the 26^th UN Climate Change Conference of the Parties (COP26) are significant contributions and critical steps for global climate action. However, countries worldwide need to achieve carbon neutrality to keep the global temperature from growing beyond the level that will cause catastrophic damages globally.     

Averting behavior and the benefits of reduced soiling

The individual's choice of cleaning frequency is examined theoretically under assumptions more general than those of previous authors. The individual is assumed to maximize utility over “cleanliness” and a general commodity, where cleanliness is determined by frequency of cleaning and ambient pollution. Allowance is made for the possibility that the cost per cleaning episode is positively affected by pollution and negatively affected by the frequency of cleaning. The present framework is used to make comparisons and comments regarding the assumptions and results of Watson and Jaksch [J. Environ. Econ. Manag.9 (1982), 248–262] and Courant and Porter [J. Environ. Econ. Manag.8 (1981), 321–329].     

A note on option value and the expected value of consumer's surplus

In roughly contemporaneous papers, Cicchetti and Freeman (Quart. J. Econ., 1971) and Schmalensee (Amer. Econ. Rev., 1972) reached apparently conflicting conclusions about the sign taken by option value. Cicchetti and Freeman conclude that option value is always non-negative. Schmalensee concludes that option value may be either positive or negative, depending upon the circumstances. This paper reconciles these seemingly contradictory conclusions. It is demonstrated that Cicchetti and Freeman's unambiguous conclusions concerning the sign of option value are the result of two special strong assumptions not imposed by Schmalensee.     

Regulating activities with catastrophic environmental effects

In this paper a catastrophe is an unforeseen event which reduces society's level of consumption to zero. Two types of catastrophe are analyzed. In one case catastrophe results in a temporary reduction in utility; in the other, catastrophe is irreversible and is tantamount to truncating the planning horizon. The first case characterizes certain types of pollution problems such as radioactive pollution produced by a nuclear power plant. An example of an irreversible catastrophe is the inadvertent depletion of a nonrenewable resource for which no substitute is available.     

Intertemporal and intergenerational pareto efficiency revisited

This paper demonstrates that Bishop's formulation deviates in a fundamental way from our model and, in so doing, Bishop has assumed the problem away. Bishop utilizes a utility function that is too general to discriminate the time pattern of consumption from that of production. Hence, the intertemporal nature of the goods that we analyzed cannot be captured by Bishop's representation. Furthermore, we show that current benefit cost methods that discount the benefit stream of a public asset are Pareto intertemporally inefficient.     

‘Optimal’ pollution abatement—whose benefits matter, and how much?

We examine the determinants of environmental regulatory activity (inspections and enforcement actions) and levels of air and water pollution for 409 US pulp and paper mills, using data for 1985–1997. We focus on the benefits to the surrounding population from pollution abatement. Plants with larger benefits emit less pollution, as do those with more kids and elders nearby. Plants in poor areas emit more pollution, though (surprisingly) we find less pollution in minority areas. Out-of-state neighbors seem to count less than in-state ones, although this effect diminishes if the bordering state's Congressional delegation is strongly pro-environment. We use ‘spatially lagged’ instrumental variables to control for the potential endogeneity of which individuals choose to locate near the plant. The results for regulatory activity are noticeably less significant than the emissions results.     

Monopoly and external costs: An application of second-best theory to the automobile industry

A monopoly that creates external costs poses a classic second-best problem: Whereas optimal allocation would be achieved by both removal of the monopoly and correction of the externality, it cannot be presumed that either action taken alone would improve welfare. It is shown that the desirability of pursuing either policy in isolation depends on the relative size of the external cost and the monopolist's price-cost margin. The analysis is applied to the automoblie manufacturing industry. Under current estimates of pollution damage and price-cost margin, industry output is suboptimal. Whereas this finding may not be translated directly into policy recommendations, it suggests that some skepticism about internalizing pollution costs is justified unless such action is accompanied by an appropriate reduction in monopoly power.     

Strategic pollution control and capital tax competition

In an analytical model of symmetric countries with mobile capital and local or transboundary pollution we investigate whether competition in emissions taxes (or emissions caps) and capital taxes leads to efficient outcomes when governments act strategically. When they have capital taxes and emissions caps at their disposal, they refrain from taxing capital and set their caps inefficiently lax [efficient] for transboundary [local] pollution. When they have the option to tax capital and emissions, capital is subsidized [untaxed] and emissions taxes are inefficiently low [efficient] for transboundary [local] pollution. In case of transboundary pollution emissions caps are Pareto-superior to emissions taxes. That holds regardless of whether the environmental policy is applied as stand-alone policy or combined with capital tax competition.     

Calculation and use of selectivity coefficients of feeding: Zooplankton grazing

A straightforward method for calculating selectivity coefficients (W_ij) of predation from raw data, mortality rates of prey, filtering rates, feeding rates and electivity indices is derived. Results from a comparison of selectivity coefficients for the copepod Diaptomus oregonensis grazing under a number of experimental conditions suggest that W_ij's for size-selective feeding are invariant, a conclusion also supported by the leaky-sieve model. Recommendations are made on how to use W_ij's in linear and nonlinear feeding constructs for zooplankton and other animals.     

Pollution incidence and political jurisdiction: evidence from the TRI

Few issues are more contentious for local communities than industrial pollution. When local industries pollute, lawmakers and regulators must balance two primary concerns: economic prosperity and the environment. The role of political pressure is well documented in environmental policy. What is less clear is the role jurisdictional or boundary considerations play in determining the implementation of environmental laws. Anecdotal evidence suggests that local regulators are more lenient in their treatment of polluters when the incidence of pollution falls partially on those outside the state. One explanation for such behavior is that regulators take actions to maximize political support. This paper tests this jurisdictional model using toxics release inventory (TRI) data from 1987 to 1996. We find that facilities’ emissions into the air and water are systematically higher in counties that border other states. These results are consistent with the hypothesis that jurisdictional considerations are an important determinant of pollution incidence.     

Stoffflussanalyse von quartären Ammoniumverbindungen für die Schweiz

Background, aim, and scope Compared to other micropollutants such as pesticides or pharmaceuticals, less attention has been paid to biocides so far. A prioritisation of the biocides currently used in Switzerland in terms of pollution of waters revealed that quaternary ammonium compounds (QAC), the isothiazolinones chloromethylisothiazolinone and benzisothiazolinone as well as Irgarol exhibit the highest risk potential. The QAC benzalkoniumchloride (BAC) and didecyldimethylammoniumchloride (DDAC-C10) are used in considerable amounts and have a high biological activity. Materials and methods The emissions of selected QAC in waters and soil and the predicted environmental concentrations (PECs) were estimated by means of a substance flow analysis (SFA). The study was based on data from the Swiss products register, on literature, contacts to producers and users as well as on own assumptions. Results and discussion The consumption of BAC (four homologues) and DDAC-C10 in biocidal applications in Switzerland amounts to 90 and 30 tons annually. The most important applications are disinfectants for public health areas, food and feed areas as well as wood preservatives. The total emissions to the environment of all five substances account for approximately 11?t/a. The PECs in surface waters and sediments vary from values slightly lower than the predicted no-effect concentration (PNEC) to roughly three orders of magnitude below the PNEC. However, concentrations above the PNEC are possible at certain locations, particularly downstream of wastewater treatment plants (WWTP) effluents and sewer overflows. Effects on aquatic organisms can therefore not be excluded. Three BAC homologues could not be assessed, as there were no PNEC values available. Conclusions The contribution of emissions from WWTP (punctual emissions) to the environment is only about one tenth and relatively low compared to diffuse emissions. This means that measures for the emission reduction focussing only on end-of-pipe solutions in WWTP will not reduce the emissions significantly. Moreover, for the evaluation of measures, attention has to be paid to the fact that biocides such as the selected QAC are often also applied in non-biocidal applications (e.?g. three times higher volumes in the case of BAC). Recommendations and perspectives SFA serves as a useful tool for early recognition of environmental problems caused by chemicals. This allows recommending appropriate risk reduction measures in the production, the use and the end-of-life phase. It is advisable to use the SFA already in the development stage of chemicals and later on as a quality control tool. The relevant sources of chemicals and sinks in the environment can thus be determined in complex systems, even in absence of extensive measurements or product registers with consumption figures by means of estimations and scenarios.