1932

Abstract

Economics has long provided the theoretical framework for efficient pollution management. Efficiency requires equating marginal damages of pollution emissions to their marginal control costs. Recent advances in integrated assessment models (IAMs) highlight the importance of estimating and incorporating marginal damages into pollution policy design. Concurrently, this work has also advanced pollution management at the macroeconomic level. Marginal damages play a critical role in tracking total damages of pollution through national accounts. This article reviews these recent advances and discusses the status of IAMs for air and water pollution. Several exciting research challenges for future IAMs are discussed.

Loading

Article metrics loading...

/content/journals/10.1146/annurev-resource-100516-053501
2017-10-05
2024-03-28
Loading full text...

Full text loading...

/deliver/fulltext/resource/9/1/annurev-resource-100516-053501.html?itemId=/content/journals/10.1146/annurev-resource-100516-053501&mimeType=html&fmt=ahah

Literature Cited

  1. Aldy JE, Viscusi WK. 2007. Age differences in the value of statistical life: revealed preference evidence. Rev. Environ. Econ. Policy 1:2241–60 [Google Scholar]
  2. Arnold JG, Moriasi DN, Gassman PW, Abbaspour KC, White MJ. et al. 2012. SWAT: model use, calibration, and validation. Trans. Am. Soc. Agric. Biol. Eng. 55:41491–508 [Google Scholar]
  3. Banzhaf HS, Chupp BA. 2012. Fiscal federalism and interjurisdictional externalities: new results and an application to US air pollution. J. Public Econ. 96:449–64 [Google Scholar]
  4. Baumol WJ, Oates WE. 1988. The Theory of Environmental Policy Cambridge, UK: Cambridge Univ. Press. , 2nd ed..
  5. Bingham TH, Bondelid TR, Depro BM, Figueroa RC, Hauber AB. et al. 2000. A benefits assessment of water pollution control programs since 1972: Part 1, the benefits of point source controls for conventional pollutants in rivers and streams Rep., Res. Triangle Inst. Off. Water, Off. Polit. Econ. Innov., US Environ. Prot. Agency Washington, DC:
  6. Bloyd CN, Henrion M, Marnicio R. 1995. The Tracking and Analysis Framework (TAF): a tool for the integrated assessment of acid deposition Presented at Air Waste Manag. Assoc. Conf. Tempe, Ariz.:
  7. Bockstael NE, Hanemann WM, Kling CL. 1987. Estimating the value of water quality improvements in a recreational demand framework. Water Resour. Res. 23:5951–60 [Google Scholar]
  8. Burns DA, Lynch JA, Cosby BJ, Fenn ME, Baron JS. EPA Clean Air Mark. Div 2011. National Acid Precipitation Assessment Program Report to Congress 2011: An Integrated Assessment Washington, DC: Natl. Sci. Technol. Counc.
  9. Burtraw D, Krupnick A, Mansur E, Austin D, Farrell D. 1998. Costs and benefits of reducing air pollutants related to acid rain. Contemp. Econ. Policy 16:379–400 [Google Scholar]
  10. Burtraw D, Mansur E. 1999. Environmental effects of SO2 trading and banking. Environ. Sci. Technol. 33:3489–94 [Google Scholar]
  11. Byun DW, Schere KL. 2006. Review of the governing equations, computational algorithms, and other components of the Models-3 Community Multiscale Air Quality (CMAQ) modeling system. Appl. Mech. Rev. 59:251–77 [Google Scholar]
  12. Carson RT, Mitchell RC. 1993. The value of clean water: the public's willingness to pay for boatable, fishable, and swimmable quality water. Water Resour. Res. 29:72445–54 [Google Scholar]
  13. Clark EH. 1985. The off-site costs of soil erosion. J. Soil Water Conserv. 40:119–22 [Google Scholar]
  14. Dockery DW, Pope CA, Xu X, Spengler JD, Ware JH. et al. 1993. An association between air pollution and mortality in six U.S. cities. New Engl. J. Med. 329:1753–59 [Google Scholar]
  15. Egan KJ, Herriges JA, Kling CL, Downing JA. 2009. Valuing water quality as a function of water quality measures. Am. J. Agric. Econ. 91:1106–23 [Google Scholar]
  16. EPA (US Environ. Prot. Agency). 1999. The benefits and costs of the Clean Air Act: 1990–2010 Rep. 410-R-99–001 Off. Air Radiat., Off. Policy, EPA Washington, DC:
  17. EPA (US Environ. Prot. Agency). 2011. The benefits and costs of the Clean Air Act: 1990–2020 Final Rep., Off. Air Radiat., Off. Policy, EPA Washington, DC:
  18. Fann N, Fulcher CM, Hubbell BJ. 2009. The influence of location, source and emission type in estimates of the human health benefits of reducing a ton of air pollution. Air Qual. Atmos. Health 2:169–76 [Google Scholar]
  19. Farrow RS, Schultz MT, Celikkol P, Van Houtven GL. 2005. Pollution trading in water quality limited areas: use of benefits assessment and cost-effective trading ratios. Land Econ 81:2191–205 [Google Scholar]
  20. Fast JD, Gustafson WI Jr., Easter RC, Zaveri RA, Barnard JC. et al. 2006. Evolution of ozone, particulates, and aerosol direct forcing in an urban area using a new fully-coupled meteorology, chemistry, and aerosol model. J. Geophys. Res. 111:D21305 [Google Scholar]
  21. Freeman AM III. 1979. The benefits of air and water pollution control: a review and synthesis of recent estimates Rep., Counc. Environ. Qual., US Environ. Prot. Agency Washington, DC:
  22. Freeman AM III. 1982. Air and Water Pollution Control: A Benefit-Cost Assessment Hoboken, NJ: John Wiley & Sons
  23. Gassman PW, Williams JR, Benson VW, Izaurralde RC, Hauck LM. et al. 2005. Historical development and applications of the EPIC and APEX models Rep., Cent. Agric. Rural Dev., Iowa State Univ. Ames:
  24. Goodkind AL, Coggins JS, Marshall JD. 2014. A spatial model of air pollution: the impact of the concentration-response function. J. Assoc. Environ. Resour. Econ. 1:4451–79 [Google Scholar]
  25. Griffiths C, Klemick K, Massey M, Moore C, Newbold S. et al. 2012. U.S. Environmental Protection Agency valuation of surface water quality improvements. Rev. Environ. Econ. Policy 6:1130–46 [Google Scholar]
  26. Hansen L, Ribaudo M. 2008. Economic measures of soil conservation benefits: regional values for policy analysis Tech. Bull. 1922 US Dep. Agric. Washington, DC:
  27. Henrion M, Sonnenblick B. 1997. Innovations in integrated assessment: the Tracking and Analysis Framework (TAF) Presented at Air Waste Manag. Conf. Acid Rain Electr. Util. Scottsdale, Ariz.:
  28. Heo J, Adams PJ, Gao HO. 2016. Public health costs of primary PM2.5 and inorganic PM2.5 precursor emissions in the United States. Environ. Sci. Technol. 50:116061–70 [Google Scholar]
  29. Holland SP, Mansur ET, Muller NZ, Yates AJ. 2016. Are there environmental benefits from driving electric vehicles? The importance of local factors. Am. Econ. Rev. In press
  30. Jaramillo P, Muller NZ. 2016. The air pollution damage from energy production in the U.S.: 2002–2011. Energy Policy 90:202–11 [Google Scholar]
  31. Keeler BL, Gourevitch JD, Polasky S, Isbell F, Tessum CW. et al. 2016. The social costs of nitrogen. Sci. Adv. 2:10e1600219 [Google Scholar]
  32. Keeler BL, Polasky S, Brauman KA, Johnson KA, Finlay JC. et al. 2012. Linking water quality and well-being for improved assessment and valuation of ecosystem services. PNAS 109:4518619–24 [Google Scholar]
  33. Keiser DA. 2016. The missing benefits of clean water and the role of mismeasured pollution data Work. Pap., Iowa State Univ. Ames:
  34. Kerl PY, Zhang W, Moreno-Cruz JB, Nenes A, Realff MJ. et al. 2015. A new approach for optimal electricity planning and dispatching with hourly time-scale air quality and health considerations. PNAS 112:10884–89 [Google Scholar]
  35. Kling CL, Panagopoulos Y, Rabotyagov SS, Valcu AM, Gassman P. et al. 2014. LUMINATE: linking agricultural land use, local water quality and Gulf of Mexico hypoxia. Eur. Rev. Agric. Econ. 41:3431–59 [Google Scholar]
  36. Kneese AV, Bower BT. 1968. Managing Water Quality: Economics, Technology, and Institutions Baltimore, MD: John Hopkins Univ. Press
  37. Krewski D, Jerrett M, Burnett RT, Ma R, Hughes E, Shi Y. et al. 2009. Extended follow-up and spatial analysis of the American Cancer Society study linking particulate air pollution and mortality Res. Rep. 140 Health Eff. Inst. Boston, Mass.:
  38. Krupnick AJ. 1986. Costs of alternative policies for the control of nitrogen dioxide in Baltimore. J. Environ. Econ. Manag. 13:2189–97 [Google Scholar]
  39. Krysanova V, White M. 2015. Advances in water resources assessment with SWAT—an overview. Hydrol. Sci. J. 60:5771–83 [Google Scholar]
  40. Lepeule J, Laden F, Dockery D, Schwartz J. 2012. Chronic exposure to fine particles and mortality: an extended follow-up of the Harvard Six Cities Study from 1974 to 2009. Environ. Health Perspect. 120:7965–70 [Google Scholar]
  41. Levy JI, Baxter LK, Schwartz J. 2009. Uncertainty and variability in health-related damages from coal-fired power plants in the United States. Risk Anal 29:71000–14 [Google Scholar]
  42. Mendelsohn RO. 1980. An economic analysis of air pollution from coal-fired power plants. J. Environ. Econ. Manag. 7:30–43 [Google Scholar]
  43. Muller NZ. 2011. Linking policy to statistical uncertainty in air pollution damages. B.E. Press J. Econ. Anal. Policy 11:1art. 32 [Google Scholar]
  44. Muller NZ. 2014. Boosting GDP growth by accounting for the environment. Science 345:6199873–74 [Google Scholar]
  45. Muller NZ, Mendelsohn RO. 2007. Measuring the damages due to air pollution in the United States. J. Environ. Econ. Manag. 54:1–14 [Google Scholar]
  46. Muller NZ, Mendelsohn RO. 2009. Efficient pollution regulation: getting the prices right. Am. Econ. Rev. 99:51714–39 [Google Scholar]
  47. Muller NZ, Mendelsohn RO, Nordhaus WD. 2011. Environmental accounting for pollution in the U.S. economy. Am. Econ. Rev. 101:51649–75 [Google Scholar]
  48. Oates WE, Portney PR, McGartland AM. 1989. The net benefits of incentive-based regulation: a case study of environmental standard setting. Am. Econ. Rev. 79:51233–42 [Google Scholar]
  49. O'Neil W, David M, Moore C, Joeres E. 1983. Transferable discharge permits and economic efficiency: the Fox River. J. Environ. Econ. Manag. 10:4346–55 [Google Scholar]
  50. Nordhaus WD. 1993. Rolling the ‘DICE’: an optimal transition path for controlling greenhouse gases. Resour. Energy Econ. 15:27–50 [Google Scholar]
  51. Nordhaus WD. 2006. Principles of national accounting for non-market accounts. A New Architecture for the U.S. National Accounts. NBER Studies in Income and Wealth 66 DW Jorgensen, JS Landefeld, WD Nordhaus 143–60 Chicago: Univ. Chicago Press [Google Scholar]
  52. Nordhaus WD, Tobin J. 1972. Is Growth Obsolete? Studies in Income and Wealth 38 New York: NBER
  53. Pope CA III, Thun MJ, Namboodiri MM. 1995. Particulate air pollution as a predictor of mortality in a prospective study of U.S. adults. Am. J. Respir. Crit. Care Med. 151:669–74 [Google Scholar]
  54. Rabl A, Spadaro JV. 1999. Damages and costs of air pollution: an analysis of uncertainties. Environ. Int. 25:129–46 [Google Scholar]
  55. Rabotyagov SS, Campbell TD, White M, Arnold JG, Atwood J. et al. 2014. Cost-effective targeting of conservation investments to reduce the northern Gulf of Mexico hypoxic zone. PNAS 111:5218530–35 [Google Scholar]
  56. Ribaudo MO, Young CE. 1989. Estimating the water quality benefits from soil erosion control. J. Am. Water Resour. Assoc. 25:171–78 [Google Scholar]
  57. Schultz MT, Small MJ, Farrow RS, Fishbeck PS. 2004. State water pollution control policy insights from a reduced-form model. J. Water Resour. Plan. Manag. 132:2150–59 [Google Scholar]
  58. Schultz MT, Small MJ, Fishbeck PS, Farrow RS. 2006. State water pollution control policy insights from a reduced-form model. Environ. Model. Assess. 11:4345–59 [Google Scholar]
  59. Seskin EP, Anderson RJ. 1983. An empirical analysis of economic strategies for controlling air pollution. J. Environ. Econ. Manag. 10:2112–24 [Google Scholar]
  60. Tessum CW, Hill JD, Marshall JD. 2015. InMAP: a new model for air pollution interventions. Geosci. Model. Dev. Discuss. 8:9281–321 [Google Scholar]
  61. Turner DB. 1994. Workbook of Atmospheric Dispersion Estimates: An Introduction to Dispersion Modeling Ann Arbor, MI: Lewis. , 2nd ed..
  62. Van Houtven G, Powers J, Pattanayak SK. 2007. Valuing water quality improvements in the United States using meta-analysis: Is the glass half-full or half-empty for national policy analysis?. Resour. Energy Econ. 29:3206–28 [Google Scholar]
  63. Viscusi WK, Aldy JE. 2003. The value of a statistical life: a critical review of market estimates throughout the world. J. Risk Uncertain. 27:5–76 [Google Scholar]
  64. White MJ, Santhi C, Kannan N, Arnold JG, Harmel D. et al. 2014. Nutrient delivery from the Mississippi River to the Gulf of Mexico and effects of cropland conservation. J. Soil Water Conserv. 69:126–40 [Google Scholar]
  65. Williams JR, Arnold JG, Kiniry JR, Gassman PW, Green CH. 2008. History of model development at Temple, Texas. Hydrol. Sci. J. 53:5948–60 [Google Scholar]
/content/journals/10.1146/annurev-resource-100516-053501
Loading
/content/journals/10.1146/annurev-resource-100516-053501
Loading

Data & Media loading...

  • Article Type: Review Article
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error