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ABSTRACT. Both stationary and mobile sources are major contributors to many air quality problems. Typically, regulators have more control over total emissions from stationary sources, but only control emissions per vehicle mile from mobile sources, taking total vehicle miles of travel (VMT) as given. A cost minimization model is developed to compare emissions control policies which reduce VMT, to other prevailing stationary and mobile source emission control strategies. Connecticut data for the ground-level ozone problem is used to show that controlling VMT, through an optimally determined gasoline tax, will marginally reduce total social costs of Connecticut's emission control program. (JEL Q25)
I. INTRODUCTION
Several air pollutants are emitted by both stationary and mobile sources. In many highly urbanized areas, there are large concentrations of both types of sources, causing air quality problems to be significant. When emissions reductions must be made, regulators are forced to tighten controls on either stationary sources, mobile sources, or both. Regulators can control stationary source emissions by limiting emissions per source and by barring new sources from locating in areas in nonattainment with the National Ambient Air Quality Standards. In the case of mobile sources, regulators can restrict the level of emissions per mile from motor vehicles (make vehicles cleaner), and enact policies to control the total number of vehicle miles of travel (reduce vehicle usage). Historically, most mobile source emissions control policies have focused on reducing emissions per mile through technological controls, and have resulted in significant emissions reduction. On the other hand, the number of vehicle miles of travel (VMT) has continually increased over this same time period and has decreased the amount of emissions reductions achieved by these controls. The continuing growth of VMT coupled with proposals for even stricter ambient air quality standards (i.e., ozone and particulate matter) has increased the level of interest in measures designed to reduce VMT (U.S. EPA 1997). However, little is known about strategies which reduce mobile source emissions through reductions in VMT and these need to be assessed. The air quality economics literature lacks research on how this type of emissions control policy instrument compares to other more conventional stationary and mobile source emission control strategies.
In this paper, a cost minimization model is developed which allows such a...