Equilibrium Particulate Exposure

How should we measure air quality (co)benefits of environmental taxes? Taking a general equilibrium perspective, this paper argues that reductions in particulate emissions or concentrations are neither sufficient nor necessary to ensure reductions in population pollution exposure. First, we show empirically using global spatially disaggregated panel data on ambient particulates and population that countries' changes in particulate exposure can be substantially larger or smaller than their changes in concentrations. Second, we develop a macroeconomic integrated assessment model of particulate exposure for 30 countries (representing 60% of world population) to evaluate the relevance of this point for policy. We find that both uncompensated oil taxes and agricultural burning levies may unintentionally increase exposure despite decreasing targeted activity emissions by shifting labor to dirtier sectors or locations. Third, we find that income support can mitigate these unintended consequences. Overall, our results demonstrate the importance of considering reallocation of population and production as part of environmental policy evaluations.

Bio

Lint Barrage's research examines the macroeconomic and fiscal impacts of climate and energy transitions, and the role of new energy technologies in these dynamics. Lint's work has been recognized by the European Association of Environmental and Resource Economists’ Award for Researchers in Environmental Economics under the Age of Forty.