Interaction between Local Air Pollution and Global warming Policy and its Policy Implications

Abstract

In this paper we study the policy interactions between meeting a greenhouse gas emission constraint and local air pollution policies. We use a partial equilibrium model of a national energy market to address three questions. First what is the greenhouse gas emission reduction one can expect if one pursues local air pollution objectives only? Second what ancillary local air pollution benefits can be expected if the only policy goal is to reduce the emission of greenhouse gasses? Third, what are the efficiency gains if both policy goals are pursued jointly?global warming; ancillary benefits; policy design; air pollution