Determination and implementation of optimal air quality standards

This paper utilizes two least-cost emission control strategies and develops rules for structuring and implementing optimal air quality standards. A strategy typical of those currently enforced, based on the State Implementation Plans (SIP's ), is compared to two least-cost strategies: (i) ambient least cost (ALC ), which achieves required air quality at least cost; and (ii) emissions least cost (ELC ), which achieves required emissions reduction at least cost. A demonstration is given of the theoretically derived result that the ALC strategy should be utilized in cost-benefit analyses to determine air quality standards and to generate emissions taxes. Preliminary analysis of the St. Louis area indicated tentative justification for a particulate ambient standard at least as strict as the current Federal primary standard. The efficiency, equity, and administrative costs for implementation of strategies based on the least-cost concept are also examined.     

Cost-sharing approach for air quality control implementation A case study

The objective of the study was to investigate and develop new alternative approaches to effectively meeting the federal SOx and particulate ambient air quality standards at cost savings. Since air pollution control costs would very likely be passed along to the consumer, it is in the best interests of the consumer and industry to find the least-cost alternative policies. Cost-sharing possesses advantages not shared by other control schemes, such as emissions taxes, auctioning of “pollution certificates,” or other methods. The results of this paper indicate that the cost-sharing approach is useful for particulates control in order to minimize the burden of plants already performing substantial control who may require significant added capital investment beyond their initial amount. For SO_ξ emissions control the cost-sharing analysis calculations show significant savings in nearly all situations, whether or not stack gas treatment methods were assumed available. Furthermore, the cost-sharing approach may allow further savings when the particular cost requirements of an individual firm differ substantially from the average engineering cost estimates. A cost-sharing option should thus be included in implementation plans as an option to be used by industries at their own initiative. The spatial characteristics of emissions resulting from a particular application of the cost-sharing approach are considered. A spatial airshed emissions allocation model is discussed as a useful method of evaluating cost sharing.     

An Empirical Analysis of Exposure-Based Regulation to Abate Toxic Air Pollution

Title III of the 1990 Clean Air Act Amendments requires the Environmental Protection Agency to regulate 189 air toxics, including emissions from by-product coke ovens. Economists criticize the inefficiency of uniform standards, but Title III makes no provision for flexible regulatory instruments. Environmental health scientists suggest that population exposure, not necessarily ambient air quality, should motivate environmental air pollution policies. Using an engineering-economic model of the United States steel industry, we estimate that an exposure-based policy can achieve the same level of public health as coke oven emissions standards and can reduce compliance costs by up to 60.0%.     

Air quality improvement in Los Angeles—perspectives for developing cities

Air quality improvement in Los Angeles can inform air quality policies in developing cities. Emission control efforts, their results, costs and health benefits are briefly summarized. Today's developing cities face new challenges including regional pollution. Air quality issues in Beijing are briefly compared and contrasted with Los Angeles. Opportunities for co-benefits for climate and air quality improvement are identified. Air quality improvement in Los Angeles, California is reviewed with an emphasis on aspects that may inform air quality policy formulation in developing cities. In the mid-twentieth century the air quality in Los Angeles was degraded to an extent comparable to the worst found in developing cities today; ozone exceeded 600 ppb and annual average particulate matter <10 mm reached ~150 mg·m⁻³. Today's air quality is much better due to very effective emission controls; e.g., modern automobiles emit about 1% of the hydrocarbons and carbon monoxide emitted by vehicles of 50 years ago. An overview is given of the emission control efforts in Los Angeles and their impact on ambient concentrations of primary and secondary pollutants; the costs and health benefits of these controls are briefly summarized. Today's developing cities have new challenges that are discussed: the effects of regional pollution transport are much greater in countries with very high population densities; often very large current populations must be supplied with goods and services even while economic development and air quality concerns are addressed; and many of currently developing cities are located in or close to the tropics where photochemical processing of pollution is expected to be more rapid than at higher latitudes. The air quality issues of Beijing are briefly compared and contrasted with those of Los Angeles, and the opportunities for co-benefits for climate and air quality improvement are pointed out.     

Emission standards and price distortion

A simple model is presented which demonstrates that emission standards can either reduce or increase the distortions inherent in preregulatory relative prices. This model is used in conjunction with data for controlling air pollution in the St. Louis airshed under a least-cost set of emission standards. By applying a heuristic formula, it is concluded that this set of standards is distortion neutral. Although there is reason to believe that conventional emission standards are distortion reducing, it is clear that Pigouvian fees achieve technical efficiency in abatement as well as the elimination of price distortion.     

Cost-Effective Policies to Improve Urban Air Quality in Santiago, Chile

This paper examines the applicability of market-based incentives for controlling emissions of particulate matter from fixed sources, in a developing-country context. It uses Santiago, Chile as a case study. A linear programming model has been developed to establish the costs of achieving different air quality targets using marketable permits and command-and-control (CAC) policies. The main conclusion is that an ambient permit system (APS) substantially reduces compliance costs of achieving a given air quality target at each receptor location in the city. Consequently, the use of permits is warranted. However, spatial differentiation of permits is required, thus complicating the design and use of such an instrument. Moreover, the reduction in compliance costs under APS is significantly less when the air quality targets imposed for each receptor location are the same as those achieved by other CAC policies.     

Distributional analysis of regional benefits and cost of air quality control

The methodology and results of an analysis of benefits and costs of air quality control for an urban region in Florida are given. The machinery used considers the spatial distribution of (a) emission sources, (b) the ambient levels resulting from local meteorological conditions and geographic features, and (c) the socioeconomic characteristics of the impacted population groups. This facilitates an examination of the distributional aspects of costs and benefits associated with various control scenarios. With appropriate adaptation and inputs the steps in our analysis should apply to a distributional benefit/cost analyses for any region.     

Optimal quasi-market choice in the presence of pollution externalities

When the relationship between emissions and ambient pollution is known, it is possible to implement a program to achieve economically efficient pollution levels, even when the control agency knows nothing about the victim's valuation of pollution damages or about emission abatement costs. Unlike a Pigouvian tax, the program provides the correct incentives for entry and exit whether or not marginal damages from a firm's emissions vary over the range of these emissions. Through the provision of “missing” markets, sizable revenues are raised while allocative distortions are corrected.     

Adjustment costs and optimal waste treatment

Consideration is given to various reasons for changing standards on emissions, effluents, and ambient air and water quality. It is proposed that adjustment costs may be of significant practical importance in determining the optimal time path of waste treatment (at least currently). The problem of minimizing the present value of the sum of treatment plus damage plus adjustment costs is placed in a calculus of variations framework and the optimal time path of waste treatment is characterized as well as the corresponding optimal tax. An example is used to illustrate some features of the solution.     

On marketable air-pollution permits: The case for a system of pollution offsets

After examining the properties of several alternative forms of marketable permit systems for the control of air pollution, this paper proposes a system of pollution offsets as the most promising approach. Under the pollution-offset scheme, sources of emissions are free to trade emissions permits subject to the constraint of no violations of the predetermined air-quality standard at any receptor point. The paper shows that the pollution-offset system has the capacity to achieve the predetermined standards of air quality at the minimum aggregate abatement cost, while making comparatively modest demands both on the sources and on the administering agency.     

Marketable permits for the prevention of environmental deterioration

This paper develops a modified system of marketable emission permits that promises both savings in abatement costs to sources and improved environmental quality relative to an initial command-and-control (CAC) outcome. Using a model of TSP emissions for the Baltimore Air Quality Control Region (AQCR), a series of simulation exercises indicates that such a permit system could generate large cost savings while inducing significant reductions in TSP concentrations as compared to the existing CAC regime in Baltimore.     

New parameterization scheme for effective indices for emissions from road transport

The local to regional processes of chemical transformations, washout and dry deposition cannot be directly resolved in global scale models, they rather need to be parameterized. A suitable way to account for the non-linearity, e.g., in chemical transformation processes, is the use of effective emission indices (EEIs). EEI translate the actual (small scale) emissions into input for global scale models, partially accounting for unresolved processes occurring shortly after the release of the emissions.The emissions from the road traffic have some specifics, because of which the concept of deriving EEI from the interaction of an instantaneous plume with the ambient air is perhaps not so convenient. A new parameterization scheme for the EEI from the road transport is suggested in the present paper, based on few simplifying assumptions and introducing the adjoin equations approach, which makes it possible to achieve unified, not depending on the specific emission pattern, procedure for calculating the EEI from road traffic.     

Metals concentration associated with respirable particulate matter (PM10) in industrial area of Eastern U.P. India

The present study deals with the assessment of ambient air quality with respect to respirable suspended particulate matter (RSPM or PM10 < or = 10 microm) and trace metals (Fe, Zn, Cu, Cr Ni, Cd, Mn and Pb) concentrations in RSPM at five locations of Renukoot, an industrial area of Eastern Uttar Pradesh. The 24 hr mean concentrations of PM10 ranged between 69.3 to 118.9 microg m(-3), which is well within the permissible limit (150 microg m(-3)) of national ambient air quality standards (NAAQS) but found higher than the prescribed annual daily limit of US EPA (50 microg m(-3)). The ambient air was mostly dominated by the Fe and least by the Cd among the metal analysed. Murdhawa, a commercial place influenced by vehicular population, is found to be the most polluted area of Renukoot and Dongia nalla (forest area) the least. The ambient air of Murdhawa is rich in Cu and Ni, indicating contribution of mobile sources. The Rammandir a residential place near the industry, is rich in Cd and Cr suggesting contribution of point sources. The Ni concentration is found to be alarmingly high in the air at all the locations except Dongia nallah, when compared with the EC (European Commission) limit (20 ng m(-3)). The Cd concentration is found to be higher only at Rammandir as compared with the EC limit (5 ng m(-3)). Mean concentrations of Zn, Pb and Mn are found to be almost equal in the ambient air of all the locations, suggesting the significance of sources contributing to presence of these metals. Zn, Cu, Pb and Ni having a significant correlation with PM10 indicate the same source contributing these metals as well as PM10. The present study has focused on the quantitative variation in different metals in the PM10, which is extremely harmful due to their toxic and carcinogenic nature.     

Achieving air pollutant emission reduction targets with minimum abatement costs: An enterprise-level allocation method with constraints of fairness and feasibility

• Quantification of efficiency and fairness of abatement allocation are optimized. • Allocation results are refined to the different abatement measures of enterprises. • Optimized allocation results reduce abatement costs and tap the abatement space. • Abatement suggestions are given to enterprises with different abatement quotas. For achieving air pollutant emission reduction targets, total pollutant amount control is being continuously promoted in China. However, the traditional pattern of pollutant emission reduction allocation regardless of economic cost often results in unreasonable emission reduction pathways, and industrial enterprises as the main implementers have to pay excessively high costs. Therefore, this study adopted economic efficiency as its main consideration, used specific emission reduction measures (ERMs) of industrial enterprises as minimum allocation units, and constructed an enterprise-level pollutant emission reduction allocation (EPERA) model with minimization of the total abatement cost (TAC) as the objective function, and fairness and feasibility as constraints for emission reduction allocation. Taking City M in China as an example, the EPERA model was used to construct a Pareto optimal frontier and obtain the optimal trade-off result. Results showed that under basic and strict emission reduction regulations, the TAC of the optimal trade-off point was reduced by 46.40% and 45.77%, respectively, in comparison with that achieved when only considering fairness, and the Gini coefficient was 0.26 and 0.31, respectively. The abatement target was attained with controllable cost and relatively fair and reasonable allocation. In addition, enterprises allocated different emission reduction quotas under different ERMs had specific characteristics that required targeted optimization of technology and equipment to enable them to achieve optimal emission reduction effects for the same abatement cost.     

Impact of vehicular exhaust on ambient air quality of Rohtak city, India

In the present study, ambient air quality of Rohtak city (Haryana) was monitored by High Volume Sampler. The selected parameters to judge the quality of air were Sulphur dioxide (SO2), Nitrogen dioxide NO), Ozone (O3) and Suspended particulate matters (SPM) which give a fair idea of pollution load carried by the air. The monitoring data were collected from six sites randomly selected in Rohtak city. Sulphur dioxide was found below the permissible limits of National Ambient Avo Quality Standards (NAAQS) at all the sites. Higher concentration of SO2 was observed during winter in comparison to summer and monsoon seasons. Nitrogen dioxide concentration was found to be above the prescribed standards of NAAOS at four sites in winter season. Ozone concentration was found below the prescribed standards (NAAOS), but its concentration was higher in summer season as compared to winter. Suspended particulate matter concentration was observed above the safety limits at all the sites in all three seasons.     

A Model of Intertemporal Emission Trading, Banking, and Borrowing

This paper provides a general treatment of emission trading, banking, and borrowing in an intertemporal, continuous-time model. Using optimal-control theory, the decentralized behavior of firms is shown to lead to the least-cost solution attainable under joint-cost minimization. Explicit solutions for the time paths of emissions and permit prices are derived when firms are allowed to both bank and borrow and when firms are only allowed to bank emission permits. The policy implications of emission banking and borrowing are discussed.     

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.     

Emissions standards and ambient environmental quality standards with stochastic environmental services

Many important environmental policies involve some combination of emission controls and ambient environmental quality standards, for instance SO₂ emissions are capped under Title IV of the U.S. Clean Air Act Amendments while ambient SO₂ concentrations are limited under National Ambient Air Quality Standards (NAAQS). This paper examines the relative performance of emissions standards and ambient standards when the natural environment provides stochastic environmental services for assimilating pollution. For receiving media characterized by greater dispersion in the distribution of environmental services, the optimal emissions policy becomes more stringent, whereas the optimal ambient policy generally becomes more lax. In terms of economic performance, emissions policies are superior to ambient policies for relatively non-toxic pollutants, whereas ambient standards welfare dominate emissions standards for sufficiently toxic pollutants. In the case of combined policies that jointly implement emissions standards and ambient standards, we show that the optimal level of each standard relaxes relative to its counterpart in a unilateral policy, allowing for greater emissions levels and higher pollution concentrations in the environmental medium.     

Emissions standards and ambient environmental quality standards with stochastic environmental services

Many important environmental policies involve some combination of emission controls and ambient environmental quality standards, for instance SO₂ emissions are capped under Title IV of the U.S. Clean Air Act Amendments while ambient SO₂ concentrations are limited under National Ambient Air Quality Standards (NAAQS). This paper examines the relative performance of emissions standards and ambient standards when the natural environment provides stochastic environmental services for assimilating pollution. For receiving media characterized by greater dispersion in the distribution of environmental services, the optimal emissions policy becomes more stringent, whereas the optimal ambient policy generally becomes more lax. In terms of economic performance, emissions policies are superior to ambient policies for relatively non-toxic pollutants, whereas ambient standards welfare dominate emissions standards for sufficiently toxic pollutants. In the case of combined policies that jointly implement emissions standards and ambient standards, we show that the optimal level of each standard relaxes relative to its counterpart in a unilateral policy, allowing for greater emissions levels and higher pollution concentrations in the environmental medium.