Fossil Fuel Prices and Air Pollution
Fossil fuel combustion is a major contributor to urban air pollution, which in turn can lead to negative health outcomes. While the relationship between fuel prices and consumption has been extensively documented, the knock-on impact on air quality is less studied. Detailed knowledge on the price-pollution channel is valuable in designing effective pollution reduction measures. This paper analyzes the impact of gasoline, diesel, and coal prices on air pollution in 133 countries over a 19-year period. The dataset combines prices, consumption, country-specific variables, and annual average fine particulate matter concentrations in each country’s capital city. Using the common correlated effects estimator, the analysis finds a robust negative relationship between gasoline and diesel prices and particle concentrations. A US$1 increase in the average annual retail price of these common transport fuels is associated with at least a 22.2 microgram per cubic meter decrease in annual average fine particulate matter concentrations. In contrast, there is no significant effect for coal, which is often used in power generation and industrial applications, making it less responsive to short-term price variations. Overall, the results are in line with earlier studies, as price increases are correlated with improved urban air quality for transport fuels.
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Format: | Working Paper biblioteca |
Language: | English English |
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World Bank, Washington, DC
2023-04-12
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Subjects: | ENERGY SUBSIDIES, AIR POLLUTION, FUEL SUBSIDIES, ECONOMIC STATISTICS, FOSSIL FUEL PRICES, ENVIRONMENTAL IMPACT, AIR POLLUTION REDUCTION, |
Online Access: | http://documents.worldbank.org/curated/en/099413104072329965/IDU01315f09006dcb0446f0a43f0e575d7e57437 https://openknowledge.worldbank.org/handle/10986/39670 |
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dig-okr-10986396702024-03-11T19:23:48Z Fossil Fuel Prices and Air Pollution Detox Development: Repurposing Environmentally Harmful Subsidies - Background Paper Evidence from a Panel of 133 Countries Mayr, Kentaro Rentschler, Jun ENERGY SUBSIDIES AIR POLLUTION FUEL SUBSIDIES ECONOMIC STATISTICS FOSSIL FUEL PRICES ENVIRONMENTAL IMPACT AIR POLLUTION REDUCTION Fossil fuel combustion is a major contributor to urban air pollution, which in turn can lead to negative health outcomes. While the relationship between fuel prices and consumption has been extensively documented, the knock-on impact on air quality is less studied. Detailed knowledge on the price-pollution channel is valuable in designing effective pollution reduction measures. This paper analyzes the impact of gasoline, diesel, and coal prices on air pollution in 133 countries over a 19-year period. The dataset combines prices, consumption, country-specific variables, and annual average fine particulate matter concentrations in each country’s capital city. Using the common correlated effects estimator, the analysis finds a robust negative relationship between gasoline and diesel prices and particle concentrations. A US$1 increase in the average annual retail price of these common transport fuels is associated with at least a 22.2 microgram per cubic meter decrease in annual average fine particulate matter concentrations. In contrast, there is no significant effect for coal, which is often used in power generation and industrial applications, making it less responsive to short-term price variations. Overall, the results are in line with earlier studies, as price increases are correlated with improved urban air quality for transport fuels. 2023-04-12T16:14:37Z 2023-04-12T16:14:37Z 2023-04-12 Working Paper http://documents.worldbank.org/curated/en/099413104072329965/IDU01315f09006dcb0446f0a43f0e575d7e57437 https://openknowledge.worldbank.org/handle/10986/39670 English en Policy Research Working Papers; 10397 CC BY 3.0 IGO https://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |
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ENERGY SUBSIDIES AIR POLLUTION FUEL SUBSIDIES ECONOMIC STATISTICS FOSSIL FUEL PRICES ENVIRONMENTAL IMPACT AIR POLLUTION REDUCTION ENERGY SUBSIDIES AIR POLLUTION FUEL SUBSIDIES ECONOMIC STATISTICS FOSSIL FUEL PRICES ENVIRONMENTAL IMPACT AIR POLLUTION REDUCTION |
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ENERGY SUBSIDIES AIR POLLUTION FUEL SUBSIDIES ECONOMIC STATISTICS FOSSIL FUEL PRICES ENVIRONMENTAL IMPACT AIR POLLUTION REDUCTION ENERGY SUBSIDIES AIR POLLUTION FUEL SUBSIDIES ECONOMIC STATISTICS FOSSIL FUEL PRICES ENVIRONMENTAL IMPACT AIR POLLUTION REDUCTION Mayr, Kentaro Rentschler, Jun Fossil Fuel Prices and Air Pollution |
description |
Fossil fuel combustion is a major
contributor to urban air pollution, which in turn can lead
to negative health outcomes. While the relationship between
fuel prices and consumption has been extensively documented,
the knock-on impact on air quality is less studied. Detailed
knowledge on the price-pollution channel is valuable in
designing effective pollution reduction measures. This paper
analyzes the impact of gasoline, diesel, and coal prices on
air pollution in 133 countries over a 19-year period. The
dataset combines prices, consumption, country-specific
variables, and annual average fine particulate matter
concentrations in each country’s capital city. Using the
common correlated effects estimator, the analysis finds a
robust negative relationship between gasoline and diesel
prices and particle concentrations. A US$1 increase in the
average annual retail price of these common transport fuels
is associated with at least a 22.2 microgram per cubic meter
decrease in annual average fine particulate matter
concentrations. In contrast, there is no significant effect
for coal, which is often used in power generation and
industrial applications, making it less responsive to
short-term price variations. Overall, the results are in
line with earlier studies, as price increases are correlated
with improved urban air quality for transport fuels. |
format |
Working Paper |
topic_facet |
ENERGY SUBSIDIES AIR POLLUTION FUEL SUBSIDIES ECONOMIC STATISTICS FOSSIL FUEL PRICES ENVIRONMENTAL IMPACT AIR POLLUTION REDUCTION |
author |
Mayr, Kentaro Rentschler, Jun |
author_facet |
Mayr, Kentaro Rentschler, Jun |
author_sort |
Mayr, Kentaro |
title |
Fossil Fuel Prices and Air Pollution |
title_short |
Fossil Fuel Prices and Air Pollution |
title_full |
Fossil Fuel Prices and Air Pollution |
title_fullStr |
Fossil Fuel Prices and Air Pollution |
title_full_unstemmed |
Fossil Fuel Prices and Air Pollution |
title_sort |
fossil fuel prices and air pollution |
publisher |
World Bank, Washington, DC |
publishDate |
2023-04-12 |
url |
http://documents.worldbank.org/curated/en/099413104072329965/IDU01315f09006dcb0446f0a43f0e575d7e57437 https://openknowledge.worldbank.org/handle/10986/39670 |
work_keys_str_mv |
AT mayrkentaro fossilfuelpricesandairpollution AT rentschlerjun fossilfuelpricesandairpollution AT mayrkentaro detoxdevelopmentrepurposingenvironmentallyharmfulsubsidiesbackgroundpaper AT rentschlerjun detoxdevelopmentrepurposingenvironmentallyharmfulsubsidiesbackgroundpaper AT mayrkentaro evidencefromapanelof133countries AT rentschlerjun evidencefromapanelof133countries |
_version_ |
1794797150827184128 |