Equity and the environment: An application of the Berliant–Strauss vertical and horizontal equity framework to measuring the distributional effects of air quality regulation

Jinhyok Heo and Robert Strauss

International Journal of Economic Theory, 2020, vol. 16, issue 1, 82-94

Abstract: The distributional effects of a major air regulation in the United State in 2015 were analyzed using Berliant and Strauss Index Numbers, a set of theoretical and empirical equity metrics, and reduced‐form models that estimate the mortality effects of air pollutant emissions and their source contributions. By viewing the effects of pollution on human mortality as an implicit tax, we found progressivity in 54% to 56% of vertical comparisons and inequity in 92% to 94% of horizontal comparisons. The introduction of the proposed policy made 58% of vertical comparisons more progressive and was equitable to 70% of horizontal comparisons.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:16:y:2020:i:1:p:82-94

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