Sacred Cars? Cost-Effective Regulation of Stationary and Nonstationary Pollution Sources
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Knittel_Sacred cars.pdf
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Author(s)
Fowlie, Meredith
Knittel, Christopher Roland
Wolfram, Catherine
Date Issued
February 2012
Journal
American Economic Journal: Economic Policy
Publisher
American Economic Association
Citation
Fowlie, Meredith, Christopher R Knittel, and Catherine Wolfram. “Sacred Cars? Cost-Effective Regulation of Stationary and Nonstationary Pollution Sources.” American Economic Journal: Economic Policy 3.4 (2012): 98–126. Web.
Version
Final published version
Abstract
For political and practical reasons, environmental regulations sometimes treat point-source polluters, such as power plants, differently from mobile-source polluters, such as vehicles. This paper measures the extent of this regulatory asymmetry in the case of nitrogen oxides (NOx), the most recalcitrant criteria air pollutant in the United States. We find significant differences in marginal abatement costs across source types: the marginal cost of reducing NOx from cars is less than half the marginal cost of reducing NOx from power plants. Our results measure the possible efficiency gains and distributional implications associated with increasing the sectoral scope of environmental regulations.
MIT Department
Sloan School of Management
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1257/pol.4.1.98
