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Dirty neighbors: Pollution in an interlinked world

Miguel Meléndez-Jiménez (melendez@uma.es) and Arnold Polanski (a.polanski@uea.ac.uk)
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Arnold Polanski: School of Economics, University of East Anglia

No 2018-06, Working Papers from Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center

Abstract: We apply a network approach to analyze individual and aggregate consumption that generates predominately local pollution (e.g., noise, water and air quality, waste disposal sites). This allows us to relate the individual pollution levels to network centralities and to design policy measures aimed at reducing the aggregate contamination. We then apply our theoretical framework to analyze the European data on fossil fuel energy consumption and discuss possible transfer schemes that, according to our model, would result in lower aggregate levels of pollution in the EU.

Keywords: local pollution; negative externalities; networks (search for similar items in EconPapers)
Pages: 26 pages
Date: 2018-07
New Economics Papers: this item is included in nep-ene, nep-env, nep-eur and nep-reg
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https://theeconomics.uma.es/malagawpseries/Papers/METCwp2018-6.pdf First version, 2018 (application/pdf)

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Journal Article: Dirty neighbors — Pollution in an interlinked world (2020) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:mal:wpaper:2018-6

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