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Examining Trends of Criteria Air Pollutants: Are the Effects of Governmental Intervention Transitory

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  • Junsoo Lee
  • John List

Abstract

Despite its growth in other areas of economics,time series econometric methods have not been widespread in the area of environmental and resource economics. We illustrate one use of time series methods by examining the time path of US nitrogen oxide (NOx) emission data over the period 1900-1994. The analysis highlights that proper time series methods can aid in optimal regulatory policy as well as developing empirical verification of theories put forth to explain economic phenomena. In addition, several interesting results emerge. First, we find that the emissions series contains both a permanent and random component. Second, if one attributed all of the emissions reductions to regulatory policy, intervention analysis suggests that the 1970 Clean Air Act(CAA) did not merely have transitory effects,but permanently influenced the NOx emission path. In terms of total regulatory impact, an upper bound on the emissions saved due to the 1970 CAA is in the range of 27%-48%.

Suggested Citation

  • Junsoo Lee & John List, 2003. "Examining Trends of Criteria Air Pollutants: Are the Effects of Governmental Intervention Transitory," Natural Field Experiments 00494, The Field Experiments Website.
    • Handle: RePEc:feb:natura:00494
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    Cited by:

    1. Cherniwchan, Jevan, 2012. "Economic growth, industrialization, and the environment," Resource and Energy Economics, Elsevier, vol. 34(4), pages 442-467.
    2. Luc Doyen & Sébastien Lavaud & Anne-Sophie Masure, 2017. "RMA newsletter Spring 2017," Post-Print hal-02196591, HAL.
    3. Firouz Fallahi, 2020. "Persistence and unit root in $$\text {CO}_{2}$$CO2 emissions: evidence from disaggregated global and regional data," Empirical Economics, Springer, vol. 58(5), pages 2155-2179, May.
    4. repec:dau:papers:123456789/6801 is not listed on IDEAS
    5. T. Verbeke & M. De Clercq, 2004. "The Environmental Kuznets Curve: some really disturbing Monte Carlo evidence," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/242, Ghent University, Faculty of Economics and Business Administration.
    6. Massimiliano Mazzanti & Antonio Musolesi, 2011. "Income and time related effects in EKC," Working Papers 201105, University of Ferrara, Department of Economics.
    7. Liu, Chang & Hong, Tao & Li, Huaifeng & Wang, Lili, 2018. "From club convergence of per capita industrial pollutant emissions to industrial transfer effects: An empirical study across 285 cities in China," Energy Policy, Elsevier, vol. 121(C), pages 300-313.
    8. Massimiliano Mazzanti & Antonio Musolesi, 2010. "Carbon Abatement Leaders and Laggards Non Parametric Analyses of Policy Oriented Kuznets Curves," Working Papers 2010.149, Fondazione Eni Enrico Mattei.
    9. Mazzanti, M. & Musolesi, A., 2013. "Economic development and CO2 emissions: assessing the effect of policy and energy time events for advanced countries," Working Papers 2013-11, Grenoble Applied Economics Laboratory (GAEL).
    10. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    11. Wang, Juan & Zhang, Kezhong, 2014. "Convergence of carbon dioxide emissions in different sectors in China," Energy, Elsevier, vol. 65(C), pages 605-611.
    12. Acar, Sevil & Yeldan, A. Erinç, 2018. "Investigating patterns of carbon convergence in an uneven economy: The case of Turkey," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 96-106.
    13. Verbeke, Tom & De Clercq, Marc, 2006. "The income-environment relationship: Evidence from a binary response model," Ecological Economics, Elsevier, vol. 59(4), pages 419-428, October.
    14. Massimiliano Mazzanti & Antonio Musolesi, 2012. "Breaking Environmental Kuznets Curves. Evaluating Energy and Policy Time Events Effects on CO2 Trends for Advanced Countries," Working Papers 201214, University of Ferrara, Department of Economics.
    15. Romero-Ávila, Diego, 2008. "Convergence in carbon dioxide emissions among industrialised countries revisited," Energy Economics, Elsevier, vol. 30(5), pages 2265-2282, September.
    16. Rafael Morales-Lage & Aurelia Bengochea-Morancho & Mariam Camarero & Inmaculada Martínez-Zarzoso, 2017. "Stochastic and club convergence of sectoral CO2 emissions in the European Union," Working Papers 2017/01, Economics Department, Universitat Jaume I, Castellón (Spain).
    17. Neagu Olimpia & Ardelean Doru Ioan & Lazăr Vasile, 2017. "How is environmental performance associated with economic growth? A world cross-country analysis," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 27(3), pages 15-32, September.

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