The Distribution of Pollution Abatement Costs among Income Classes in Korea

환경오염 저감비용의 소득계층별 분담

Environmental regulation affects real income distribution as well as resource allocation. The consumers' quality of life is sure to be improved by the pollution abatement, but consumers should pay part of the abatement cost through the increased prices of consumption goods they purchase. This paper computes pollution abatement costs that each of 15 income classes in Korea paid indirectly by consuming goods whose prices include the abatement cost in 1993. The distribution of pollution abatement costs among income classes turns out to be regressive as expected.