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http://dx.doi.org/10.15266/KEREA.2016.25.4.545

Causes of Air pollution and Effects of Mitigation Policy in Korea  

Bae, Jeonghwan (Department of Economics, Chonnam National University)
Kim, Yusun (Department of Economics, Chonnam National University)
Publication Information
Environmental and Resource Economics Review / v.25, no.4, 2016 , pp. 545-564 More about this Journal
Abstract
Recently as fine and ultra fine particles become major environmental issues in Korea, it is very important to develop effective solutions to air pollution. Accordingly this study aims at detecting causes of air pollution by using models and examining if diesel price increases contribute to reduction of diesel consumption and air pollution. TSP, PM10, $NO_X$, $SO_X$, CO, and VOC are included as major air pollutants. As a result, we found invert U shape curve between pollution and income for all air pollutants except CO. Consumer price index, coal power capacity, diesel consumption, frequency of yellow dust, number of natural gas buses, number of transport business, annual average temperature, number of manufacturing businesses are also influential in explaining causes of air pollution. As diesel price increases by 1%, air pollutants decline between 0.07~0.12% in the short run. Simultaneously, the additional revenue from increases in diesel prices might be transferred to support expansion of biofuel market. Also, stronger policy should be developed to mitigate the current air pollution problem.
Keywords
Air pollutants; Diesel consumption; Diesel price increase; Biodiesel;
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