Spatial economic theory of pollution control

In February 1972 the Nixon Administration proposed a tax on sulfur oxide emissions, beyond the Federal standards, of electric power plants. It was hoped that such a tax would discourage power plant locations in heavily polluted areas like urban areas. Assuming that such a tax varies over space because pollution is not invariant over space, the spatial theory of the firm is presented in this paper cast doubt on the efficacy of such a polltuion tax to achieve the desired goal of the administration. In particular it is shown that the cost-minimizing spatial firm would abate its pollution in response to a tax by either changing its location or by reducing waste through process change or by using a transportable abatement good if the tax savings due to the change in marginal abatement through location change per unit change in abatement is greater than or equal to transport rate on the abatement good. If the goal of the firm is to maximize profits, the desired outcome would follow if in addition to the fulfillment of the above condition the percentage change in the delivered price of raw material (situated at one end of the linear location space) per unit distance is greater than or equal to the percentage change in net marginal revenue, i.e., marginal revenue net of transport cost per unit of output. In simple terms, the conclusions of this paper raise doubts regarding the effectiveness of a pollution tax in curtailing pollution of a firm which is operating in a space economy. This outcome is peculiar to a spatial firm. Sufficient conditions also have been obtained when land input is included in the production function of the firm.     

Cars on crutches: How much abatement do smog check repairs actually provide?

Not as much abatement as has been presumed. Smog check programs aim to curb tailpipe emissions from in-use vehicles by requiring repairs whenever emissions, measured at regular time intervals, exceed a certain threshold. Using data from California, we estimate that on average 41% of the initial emissions abatement from repairs is lost by the time of the subsequent inspection, normally two years later. Our estimates imply that the cost per pound of pollution avoided is an order of magnitude greater for smog check repairs than alternative policies such as new-vehicle standards or emissions trading among industrial point sources.     

Plant vintage, technology, and environmental regulation

We use data on productivity and pollution abatement costs at individual pulp and paper mills to test whether the impact of environmental regulation on productivity differs by plant vintage and technology. Plants with higher pollution abatement costs have significantly lower productivity levels. This relationship differs greatly based on a plant's technology, with productivity at integrated mills being greatly affected by abatement costs, while the impact at non-integrated mills is negligible. Plant vintage does not seem to matter, with older and newer plants showing similar impacts. Reported abatement costs appear to substantially understate the true costs of abatement. Accounting for the impact of technology differences makes some difference in the estimated overall impact of environmental regulation.     

Measuring and decomposing changes in agricultural productivity, nitrogen use efficiency and cumulative exergy efficiency: Application to OECD agriculture

This paper uses an aggregate quantity space to decompose the temporal changes in nitrogen use efficiency and cumulative exergy use efficiency into changes of Moorsteen-Bjurek (MB) Total Factor Productivity (TFP) changes and changes in the aggregate nitrogen and cumulative exergy contents. Changes in productivity can be broken into technical change and changes in various efficiency measures such as technical efficiency, scale efficiency and residual mix efficiency. Changes in the aggregate nitrogen and cumulative exergy contents can be driven by changes in the quality of inputs and outputs and changes in the mixes of inputs and outputs. Also with cumulative exergy content analysis, changes in the efficiency in input production can increase or decrease the cumulative exergy transformity of agricultural production. The empirical study in 30 member countries of the Organisation for Economic Co-operation Development from 1990 to 2003 yielded some important findings. The production technology progressed but there were reductions in technical efficiency, scale efficiency and residual mix efficiency levels. This result suggests that the production frontier had shifted up but there existed lags in the responses of member countries to the technological change. Given TFP growth, improvements in nutrient use efficiency and cumulative exergy use efficiency were counteracted by reductions in the changes of the aggregate nitrogen contents ratio and aggregate cumulative exergy contents ratio. The empirical results also confirmed that different combinations of inputs and outputs as well as the quality of inputs and outputs could have more influence on the growth of nutrient and cumulative exergy use efficiency than factors that had driven productivity change.     

Efficiency of pollution taxation and market structure

This paper looks at the performance of a uniform pollution tax in achieving a given level of pollution abatement at least cost. It is shown that market structure is an important consideration in this performance and that in general least-cost abatement will not result from a pollution tax uniformly applied. The pattern of pollution taxes that will achieve least-cost abatement when differing degrees of market power exist among polluters is developed and discussed.     

Pollution control and inputs to production

The primary concern of this paper is to identify the inputs required for air, water, and solid waste pollution abatement in the United States. Industry level data on pollution abatement expenditures in 1976 are decomposed into expenditures on various intermediate inputs and on two primary inputs—labor and capital. The 1971 input-output table is adjusted to reflect the input needs of pollution abatement technology. This revised direct input coefficients matrix is used to derive the gross output and primary input requirements of the 1971 final bill of goods.     

Transferable discharge permits and economic efficiency: The fox river

Recent emphasis on reforms of environmental regulation has led to suggestions for strategies which maintain environmental standards but allow the needed flexibility and cost effectiveness. The transferable discharge permit (TDP) is one such strategy for water pollution control recently adopted in Wisconsin. In this article, the potential for substantial cost savings from trading TDPs is demonstrated using data on the Fox River in Wisconsin. A simulation model of water quality (Qual-III) and a linear programming model of abatement costs determine the optimum pattern of discharge. Reaching that optimum from proposed pollution abatement orders is shown to be feasible. Varying conditions of flow and temperature can be accommodated using trade coefficients which can be accurately estimated through interpolation. The calculations demonstrate the value and feasibility of flexible regulations governing water pollution abatement.     

Pollution Taxes and Pollution Abatement in an Oligopoly Supergame

This paper investigates the effects of an emissions tax on the incentives for oligopolists to acquire alternative pollution abatement technologies. The analysis is conducted in terms of a repeated game and it is demonstrated that there are circumstances in which the firms may reject the option of acquiring the pollution abatement equipment, even when this lowers their production costs.     

Environmental policy and human capital inequality: A matter of life and death

This paper analyzes the economic implications of an environmental policy when we account for the life expectancy of heterogeneous agents. In a framework in which everyone suffers from pollution but health status also depends on individual human capital, we find that the economy may be stuck in a trap in which inequality rises steadily, especially when the initial pollution intensity of production is too high. We emphasize that such inequality is in the long run costly for the economy in terms of health and growth. Therefore, we study whether a tax on pollution associated with an investment in pollution abatement can be used to address this situation. We show that a stricter environmental policy may allow the economy to escape from the inequality trap while enhancing the long-term growth rate when the initial inequality in human capital is not too large.     

Firm incentives to promote technological change in pollution control: Comment

Following on from an analysis by Milliman and Prince, this article considers further the relative incentives for technical change provided by different pollution control instruments. The comments involve the recognition that emission targets are typically chosen fairly arbitrarily because of regulators' lack of knowledge of abatement cost schedules. There is also a more detailed discussion of the practicability of auctioning emissions permits, as these have been less thoroughly covered in the literature than the other instruments.     

A proposal for improving the measurement of benefits from pollution abatement

Two basic and competing approaches for measuring the benefits of pollution abatement have found support in the recent literature-the property value approach and the health damage function approach. The purpose of this paper is to show that conditions will often exist when the property value approach will not accurately measure all benefits and conditions will always be present that cause the health damage function approach to underestimate benefits. In general, neither approach can stand alone. It is possible, however, that the two approaches can be combined in such a way as to improve the measurement of abatement benefits. We present an approach for combining these two methods and do so by introducing an “information coefficient” that measures the degree of knowledge about pollution effects held by the public. Approaches to estimating the information coefficient are suggested.     

Should the federal government subsidize industrial pollution control investment?

Tax-exempt financing of industrial pollution control equipment has increased rapidly in recent months. This method of subsidizing pollution abatement is known to be highly inefficient. If tax-exempt industrial revenue bonds were replaced by a more efficient subsidy the net financial benefits to polluting industries could probably be about doubled without any extra cost to American taxpayers. Increased utilization of an inefficient subsidy device and the international energy crisis make this a propitious time for tax experts and economists to re-examine the question, should industrial pollution control investments be subsidized?     

SWAT parameterization for the identification of critical diffuse pollution source areas under data limitations

For lowering sediment, nitrogen (N) and phosphorus (P) pollution of surface water bodies at the catchment scale, environmental legislation require programs of pollution abatement measures. To be able to ensure the cost-effectiveness of such programs we first need to identify high risk areas, which give rise to increased pollutant runoff. Process-based GIS models provide the opportunity to identify such critical areas and hence better target diffuse pollution abatement actions. However, these models are data intensive and their spatially-distributed parameterization in poorly monitored catchments is not feasible without extensive input data pre-processing and significant simplifying assumptions. This study implements the widely-used SWAT river basin model (Soil Water Assessment Tool) to study a medium-sized Greek catchment with the typical data limitations met at the national level, in order to identify critical diffuse pollution source areas that may serve as the key areas for meeting the objective of ‘good ecological status’ of water bodies set by the European Water Framework Directive (WFD). Model parameterization and evaluation are presented along with the decisions made to overcome problems related to data representation in the catchment, in an effort to provide guidance on SWAT modeling in areas with similar characteristics. The results show that sediments and nutrients could be adequately reproduced in large time steps (monthly or seasonal) and that even with the current data limitations, the seasonal variation and the most critical areas of pollutant losses to waters could be adequately identified. The study proposes a transparent modeling approach under data limitations without neglecting possible deficiencies; however, it maintains that the SWAT model, if appropriately parameterized with respect to the land-use and soil differentiation within a limited-gauged catchment, can still facilitate the selection and placement of suitable practices across the landscape for a cost-effective diffused pollution management.     

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.     

Nash Implementation of a Proportional Solution to International Pollution Control Problems

For a very general class of pollution control models involving strictly quasi-concave utility functions over consumption and environmental quality and strictly convex emission abatement cost functions, a proportional cost sharing mechanism is presented inspired by the ratio equilibrium introduced by7. It is shown that the proportional solution yields a cost efficient allocation of abatement efforts and that the resulting utility imputation always lies in the stand alone core of the cost sharing game. In order to decentralize the proportional cost sharing equilibrium, a financial compensation mechanism implementing the proportional solution in complete information Nash equilibrium is presented.     

Cost-effective unilateral climate policy design: Size matters

Given the bleak prospects for a global agreement on mitigating climate change, pressure for unilateral abatement is increasing. A major challenge is emissions leakage. Border carbon adjustments and output-based allocation of emissions allowances can increase effectiveness of unilateral action but introduce distortions of their own. We assess antileakage measures as a function of abatement coalition size. We first develop a partial equilibrium analytical framework to see how these instruments affect emissions within and outside the coalition. We then employ a computable general equilibrium model of international trade and energy use to assess the strategies as the coalition grows. We find that full border adjustments rank first in global cost-effectiveness, followed by import tariffs and output-based rebates. The differences across measures and their overall appeal decline as the abatement coalition grows. In terms of cost, the coalition countries prefer border carbon adjustments; countries outside the coalition prefer output-based rebates.     

北京城区雨水径流的污染及控制

随着城市化发展，不透水地面面积增加，雨水径流的污染性也相应增长，它已成为不可忽视的污染源。文章分析了北京市雨水径流的污染源，估算了其污染量，并提出了多种控制径流污染的措施。     

Cost sharing to induce efficient techniques of abating wastewater pollution

This paper analyzes existing cost-sharing rules for wastewater pollution grants administered by the Environmental Protection Agency under the 1972 Amendments to the Federal Water Pollution Control Act. It identifies and measures biases in the existing cost-sharing rules that encourage nonfederal interests to select particular techniques (e.g., capital-intensive techniques) over others even when the selected techniques are not the least costly to the nation. The paper develops theoretically a cost-sharing condition—that the same percentage cost share be applied to all abatement techniques—that would eliminate the cost-sharing bias. Alternative cost-sharing approaches are evaluated in terms of their biasing effects and their absolute dollar costs for federal and nonfederal project participants.     

中国土地生产力变化的情景分析

中国土地生产力变化态势是当前国内外学术界、决策界关注的焦点问题之一.介绍了土地生产力估算系统(ESLP)的原理与功能模块并利用该系统研究了中国土地生产力的变化态势.ESLP是在气温、降水、辐射水平、土壤质地等自然因素控制下,受土地利用方向与强度影响的,考虑土地系统不同的投入水平和管理措施的区域土地生产力估算系统.ESLP关注土地生产力变化的时空动态,能表达出不同投入管理水平下土地生产力的时空变化.文章应用ESLP研究了1988年和2000年中国土地生产力变化及其空间分异特征,将估算结果与1988年和2000年全国分县粮食产量数据的比较与验证表明,基于ESLP估算的各县土地生产力与各县粮食总产量具有很高的相关性,在一定程度上反映一个区域的粮食生产能力.在此基础上,应用ESLP预测了2010与2020年在气候变化情景下土地生产力的变化,预测结果显示,虽然局部地区土地生产力有小幅减少趋势,但从全国来看,土地生产力增长趋势明显.平均来看,2010年比2000年增长4.4%,而到2020年,土地生产力的增长幅度达到10.7%.不过在各个农业生态分区上,不同年份土地生产力变化差异较大,在2010年和2020年长江中下游区土地生产力均呈一定幅度的下降,而甘新区和西藏区只在2010年土地生产力有小幅下降.该研究结论对我国编制土地利用规划与粮食生产方面的决策具有重要的参考价值.     

Pollution control and technological advance: A dynamic model of the firm

The paper extends the static comparison of effluent taxes and effluent standards to a dynamic world in which firms invest resources in improving their abatement technology as well as their production technology. The analysis shows that the two pollution control policies lead to a distinctly different allocation of research and development (R & D) funds between improvement in abatement technology and improvement in production technology. The model also shows that a temporally constant effluent tax leads to an increasing effluent discharge rate for “typical” firms. Other results concern the pattern of output growth and the rate of technological advance.