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Using Spatial Econometrics to Measure Ozone Pollution Externalities

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Author(s): C.-Y. Cynthia Lin

Journal: Journal of Environmental Protection
ISSN 2152-2197

Volume: 03;
Issue: 09;
Start page: 1117;
Date: 2012;
Original page

Keywords: Air Pollution | Externalities | Spatial Econometrics

ABSTRACT
This paper summarizes my previous work in Lin (2010), in which I use spatial econometrics to analyze air pollution externalities. In Lin (2010), state-by-state source-receptor transfer coefficients that can be used as a basis for a location- differentiated permit system are estimated. Results affirm the importance of regional transport in determining local ozone air quality, although owing to non-monotonicities in ozone production the externality is not always negative. Because the origin of emissions matters, results also reject a non-spatially differentiated NOx cap and trade program as an appropriate mechanism for reducing ozone smog.
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