Air Quality Regulation in Spatial Equilibrium Models

摘要

A discussion is presented of methods for including a wide variety of air pollution regulations within the class of economic equilibrium models where allocation is based on constrained optimization. The first part of the paper discusses current air pollution regulation in the United States and possible future regulation. This is followed by the presentation of a prototype spatial equilibrium model within which a number of regulatory mechanisms are explicitly represented. These include efficient and zoned charges, statically and dynamically efficient permit systems, technological control and hybrid permit/charge systems. (ERA citation 05:034141)