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Getting Cars Off the Road: The Cost-Effectiveness of an Episodic Pollution Control Program
 

Summary: 1
Getting Cars Off the Road:
The Cost-Effectiveness of an Episodic Pollution Control Program
By
Maureen L. Cropper,1
Yi Jiang,2
Anna Alberini3
and Patrick Baur4
Abstract. Ground level ozone remains a serious problem in the United States. Because ozone
non-attainment is a summer problem, episodic rather than continuous controls of ozone precursors
are possible. We evaluate the costs and effectiveness of an episodic scheme that requires people to
buy permits in order to drive on high ozone days. We estimate the demand function for permits
based on a survey of 1,300 households in the Washington, DC metropolitan area. Assuming that
all vehicle owners comply with the scheme, the permit program would reduce VOCs by 50 tons
and NOx by 42 tons per Code Red day at a permit price of $75. Allowing for non-compliance by
15% of respondents reduces the effectiveness of the scheme to 39 tons of VOCs and 33 tons of
NOx per day. The cost per ozone season of achieving these reductions is approximately $9 million
(2008 USD). This compares favorably with permanent methods of reducing VOCs that cost $645
per ton per year.
JEL Classification: Q52 (Pollution Control Adoption Costs; Distributional Effects; Employment

  

Source: Anisimov, Mikhail - Institute for Physical Science and Technology & Department of Chemical Engineering and Biomolecular Engineering, University of Maryland at College Park

 

Collections: Physics; Materials Science