Examining trends of criteria air pollutants: Are the effects of governmental intervention transitory?

    Authors

    J. Lee;J. A. List

    Comments

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    Abbreviated Journal Title

    Environ. Resour. Econ.

    Keywords

    emissions; intervention analyses; time-series models; UNIT-ROOT; TIME-SERIES; STRUCTURAL-CHANGE; COINTEGRATION; INTENSITY; MODELS; Economics; Environmental Studies

    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%.

    Journal Title

    Environmental & Resource Economics

    Volume

    29

    Issue/Number

    1

    Publication Date

    1-1-2004

    Document Type

    Article

    Language

    English

    First Page

    21

    Last Page

    37

    WOS Identifier

    WOS:000223609200002

    ISSN

    0924-6460

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