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Energy policies and pollution in two developing country cities: A quantitative model

Rainald Borck and Peter Mulder

Journal of Development Economics, 2024, vol. 171, issue C

Abstract: We study the effect of energy and transport policies on pollution in two developing country cities. We use a quantitative equilibrium model with choice of housing, energy use, residential location, transport mode, and energy technology. Pollution comes from commuting and residential energy use. The model parameters are calibrated to replicate key variables for two developing country cities, Maputo, Mozambique, and Yogyakarta, Indonesia. In the counterfactual simulations, we study how various transport and energy policies affect equilibrium pollution. Policies may induce rebound effects from increasing residential energy use or switching to high emission modes or locations. In general, these rebound effects tend to be largest for subsidies to public transport or modern residential energy technology.

Keywords: Pollution; Energy policy; Discrete choice; Developing country cities (search for similar items in EconPapers)
JEL-codes: Q53 Q54 R48 (search for similar items in EconPapers)
Date: 2024
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Related works:
Working Paper: Energy Policies and Pollution in Two Developing Country Cities: A Quantitative Model (2024) Downloads
Working Paper: Energy policies and pollution in two developing country cities: A quantitative model (2024) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:171:y:2024:i:c:s030438782400097x

DOI: 10.1016/j.jdeveco.2024.103348

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