Evidence on Unobserved Polluter Abatement Effort
Matthew E. Kahn
- Evidence on Unobserved Polluter Abatement Effort
- Kahn, Matthew E.
- Working papers
- Permanent URL:
- Department of Economics Discussion Papers
- Part Number:
- Department of Economics, Columbia University
- Publisher Location:
- New York
- Unobserved polluter abatement effort is quantified by comparing the emissions of California cars and light trucks tested in a surprise versus and expected emissions test. California could have improved air quality at a lower social cost if drivers could be encouraged to invest more in maintenance effort. Implicit subsidies built into the system minimize the incentives to invest in maintenance.
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