American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Clearing the Air? The Effects of Gasoline Content Regulation on Air Quality
American Economic Review
vol. 101,
no. 6, October 2011
(pp. 2687–2722)
(Complimentary)
Abstract
This paper examines whether US gasoline content regulations, which impose substantial costs on consumers, have successfully reduced ozone pollution. We take advantage of spatial and temporal variation in the regulations' implementation to show that federal gasoline standards, which allow refiners flexibility in choosing a compliance mechanism, did not improve air quality. This outcome occurred because minimizing the cost of compliance does not reduce emissions of those compounds most prone to forming ozone. In California, however, we find that precisely targeted, inflexible regulations requiring the removal of particularly harmful compounds significantly improved air quality. (JEL L51, L71, L78, Q53, Q58)Citation
Auffhammer, Maximilian, and Ryan Kellogg. 2011. "Clearing the Air? The Effects of Gasoline Content Regulation on Air Quality." American Economic Review, 101 (6): 2687–2722. DOI: 10.1257/aer.101.6.2687Additional Materials
JEL Classification
- L51 Economics of Regulation
- L71 Mining, Extraction, and Refining: Hydrocarbon Fuels
- L78 Industry Studies: Primary Products and Construction: Government Policy
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 Environmental Economics: Government Policy