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Dirty neighbors — Pollution in an interlinked world

Miguel A. Meléndez-Jiménez and Arnold Polanski

Energy Economics, 2020, vol. 86, issue C

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 determine the effects of transfers among agents on the aggregate contamination. We then apply our theoretical framework to analyze the European data on fossil fuel energy consumption and discuss the impact of EU redistributive transfer policies on the aggregate level of pollution.

Keywords: Local pollution; Negative externalities; Networks (search for similar items in EconPapers)
JEL-codes: Q40 Q53 H23 D85 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.eneco.2019.104636

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