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Unpublished Paper
Controlling Urban Air Pollution Caused by Households: Uncertainty, Prices, and Income
Economics Department Working Paper Series (2011)
  • Carlos Chávez
  • JOHN K STRANLUND, University of Massachusetts - Amherst
  • Walter Gómez
Abstract

We examine the control of air pollution caused by households burning wood for heating and cooking in the developing world. Since the problem is one of controlling emissions from nonpoint sources, regulations are likely to be directed at household choices of wood consumption and combustion technologies. Moreover, these choices are subtractions from, or contributions to, the pure public good of air quality. Consequently, the efficient policy design is not independent of the distribution of household income. Since it is unrealistic to assume that environmental authorities can make lump sum income transfers part of control policies, efficient control of air pollution caused by wood consumption entails a higher tax on wood consumption and a higher subsidy for more efficient combustion technologies for higher income households. Among other difficulties, implementing a policy to promote the adoption of cleaner combustion technologies must overcome the seemingly paradoxical result that efficient control calls for higher technology subsidies for higher income households.

Keywords
  • Efficiency,
  • urban air pollution,
  • nonpoint pollution,
  • environmental policy,
  • uncertainty
Disciplines
Publication Date
July, 2011
Citation Information
Carlos Chávez, JOHN K STRANLUND and Walter Gómez. "Controlling Urban Air Pollution Caused by Households: Uncertainty, Prices, and Income" Economics Department Working Paper Series (2011)
Available at: http://works.bepress.com/john_stranlund/5/