Abstract: | An inevitable external effect of economic growth, especially for countries in the early stages of growth, is air pollution. The Taiwan experience is a case in point. To control the pollution, Taiwan created the Environmental Protection Administration. This paper assesses the impact of the administration's abatement policy on a primary component of air pollution, carbon monoxide. Using recent advances in time series analysis, we fail to find evidence of a successful policy. If carbon monoxide is to be significantly reduced, it appears that the Administration needs to adopt more stringent standards and innovative approaches. |