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Welfare Analysis of Pollution Control With Spatial Alternatives

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  • Vinod Thomas

    (World Bank in Washington D.C., U.S.A)

Abstract

This paper deals with the welfare losses resulting from emission control policies which do not take into account differences in control costs among firms and in benefits across regions. In contrast, an optimal policy considers these differences, and on their basis, requires differential controls among regions, presumably encouraging spatial adaptation of production. Drawing on an empirical analysis of welfare benefits and welfare costs of controlling particulate emissions from the iron and steel industry in two different areas, substantial gains are noted from an optimal policy over uniform and other regulations when damages vary significantly across regions.

Suggested Citation

  • Vinod Thomas, 1983. "Welfare Analysis of Pollution Control With Spatial Alternatives," Urban Studies, Urban Studies Journal Limited, vol. 20(2), pages 219-227, May.
    • Handle: RePEc:sae:urbstu:v:20:y:1983:i:2:p:219-227
    DOI: 10.1080/00420988320080351
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    References listed on IDEAS

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    1. George Tolley, 1975. "The Resource Allocation Effects of Environmental Policies," NBER Chapters, in: Economic Analysis of Environmental Problems, pages 133-167, National Bureau of Economic Research, Inc.
    2. Thomas, Vinod, 1980. "Welfare cost of pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 7(2), pages 90-102, June.
    3. Leonard P. Gianessi & Henry M. Peskin & Edward Wolff, 1979. "The Distributional Effects of Uniform Air Pollution Policy in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(2), pages 281-301.
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