Evidence on Unobserved Polluter Abatement Effort
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.
- econ_9495_712.pdf application/pdf 1.16 MB Download File
More About This Work