‘Optimal’ Pollution Abatement – Whose Benefits Matter, and How Much? Wayne B. Gray Ronald J. Shadbegian Working Paper Series Working Paper # 02-05 September, 2002 U.S. Environmental Protection Agency National Center for Environmental Economics 1200 Pennsylvania Avenue, NW (MC 1809) Washington, DC 20460 http://www.epa.gov/economics ‘Optimal’ Pollution Abatement – Whose Benefits Matter, and How Much? Wayne B. Gray Ronald J. Shadbegian Corresponding Author: Ronald J. Shadbegian Economics Department University of Massachusetts at Dartmouth and U.S. Environmental Protection Agency National Center for Environmental Economics 1200 Pennsylvania Avenue (1809T), NW Washington, DC 20460
[email protected] NCEE Working Paper Series Working Paper # 02-05 September 2002 DISCLAIMER The views expressed in this paper are those of the author(s) and do not necessarily represent those of the U.S. Environmental Protection Agency. In addition, although the research described in this paper may have been funded entirely or in part by the U.S. Environmental Protection Agency, it has not been subjected to the Agency's required peer and policy review. No official Agency endorsement should be inferred. ‘Optimal’ Pollution Abatement – Whose Benefits Matter, and How Much? Wayne B. Gray and Ronald J. Shadbegian ABSTRACT: In this paper we examine the allocation of environmental regulatory effort across U.S. pulp and paper mills, looking at measures of regulatory activity (inspections and enforcement actions) and levels of air and water pollution from those mills. We combine measures of the marginal benefits of air and water pollution abatement at each mill with measures of the characteristics of the people living near the mill.