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The incidence of pollution control policies

Author: Ian W H Parry; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2005.
Series: Working paper series (National Bureau of Economic Research), no. 11438.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
"This paper reviews theoretical and empirical literature on the household distribution of the costs and benefits of pollution control policies, and ways of integrating distributional issues into environmental cost/benefit analysis. Most studies find that policy costs fall disproportionately on poorer groups, though this is less pronounced when lifetime income is used, and policies affect prices of inputs used  Read more...
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Additional Physical Format: Print version:
Incidence of pollution control policies.
Cambridge, Mass. : National Bureau of Economic Research, 2005
(DLC) 2005618384
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Ian W H Parry; National Bureau of Economic Research.
OCLC Number: 60743398
Notes: June 2005.
Title from first page of PDF document.
Description: 1 online resource (42 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 11438.

Abstract:

"This paper reviews theoretical and empirical literature on the household distribution of the costs and benefits of pollution control policies, and ways of integrating distributional issues into environmental cost/benefit analysis. Most studies find that policy costs fall disproportionately on poorer groups, though this is less pronounced when lifetime income is used, and policies affect prices of inputs used pervasively across the economy. The policy instrument itself is also critical; freely allocated emission permits may hurt the poor the most, as they transfer income to shareholders via scarcity rents created by higher prices, while emissions taxes offer opportunities for progressive revenue recycling. And although low-income households appear to bear a disproportionate share of environmental risks, policies that reduce risks are not always progressive, for example, they may alter property values in ways that benefit the wealthy. The review concludes by noting a number of areas where future research is badly needed"--National Bureau of Economic Research web site.

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