A research team of J-PAL affiliates demonstrates that cap-and-trade markets for particulate pollution can improve air quality and lower industrial costs in low and middle-income countries, writes UChicago News.
The study, published in the May issue of the University of Chicago’s Quarterly Journal in Economics, found that the markets’ benefits outweigh their abatement costs by 25 times.
Michael Greenstone, co-chair of J-PAL’s environment, energy and climate change sector and co-author of the study, explained: “The market delivered a rare win-win-win by reducing pollution, decreasing abatement costs and raising government’s success at enforcing the law.”