Synergies and Trade-offs between Climate and Local Air Pollution: Policies in Sweden

Bonilla, Jorge,1975Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi,Department of Economics, Environmental Economics Unit (author)

In this paper, we explore the synergies and tradeoffs between abatement of global and local pollution. We built a unique dataset of Swedish heat and power plants with detailed boiler-level data 2001-2009 on not only production and inputs but also emissions of CO2 and NOx. Both pollutants are subject to strict policies in Sweden. CO2 is subject to multiple levels of governance using environmental instruments such as the EU ETS and Swedish carbon taxes; NOx – as a precursor of acid rain and eutrophication – is regulated by a heavy fee. Using a quadratic directional output distance function, we characterize changes in technical efficiency as well as patterns of substitutability in response to the policies mentioned. The fact that generating units face a trade-off between the pollutants indicates a need for policy coordination.

Coria, Jessica,1979Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi,Department of Economics, Environmental Economics Unit(Swepub:gu)xcorij (author)
Sterner, Thomas,1952Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi,Department of Economics, Environmental Economics Unit(Swepub:gu)xsteth (author)
Göteborgs universitetInstitutionen för nationalekonomi med statistik, Enheten för miljöekonomi (creator_code:org_t)

By the author/editor: Bonilla, Jorge, ...; Coria, Jessica, ...; Sterner, Thomas, ...

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