Air pollution control costs and consumption pattern effects A regional analysis

The purpose of this study was to ascertain, through the use of an input-output model, the impact of air pollution control costs on income groups in the Philadelphia Region. The range of increases in consumption expenditure was found to be fairly narrow, with the middle-income group bearing the largest increase (2.9%) and the highest and lowest groups slightly lower increases (about 2%). This finding lends support to the proposition that all income groups would probably share the costs of control equally, which leads to a slightly regressive effect on income distribution. The sharing of the region's air quality costs by other areas was also analyzed.