Publication:
Fossil Fuel Prices and Air Pollution: Evidence from a Panel of 133 Countries

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dc.contributor.authorMayr, Kentaro
dc.contributor.authorRentschler, Jun
dc.date.accessioned2023-04-12T16:14:37Z
dc.date.available2023-04-12T16:14:37Z
dc.date.issued2023-04-12
dc.description.abstractFossil fuel combustion is a major contributor to urban air pollution, which in turn can lead to negative health outcomes. While the relationship between fuel prices and consumption has been extensively documented, the knock-on impact on air quality is less studied. Detailed knowledge on the price-pollution channel is valuable in designing effective pollution reduction measures. This paper analyzes the impact of gasoline, diesel, and coal prices on air pollution in 133 countries over a 19-year period. The dataset combines prices, consumption, country-specific variables, and annual average fine particulate matter concentrations in each country’s capital city. Using the common correlated effects estimator, the analysis finds a robust negative relationship between gasoline and diesel prices and particle concentrations. A US$1 increase in the average annual retail price of these common transport fuels is associated with at least a 22.2 microgram per cubic meter decrease in annual average fine particulate matter concentrations. In contrast, there is no significant effect for coal, which is often used in power generation and industrial applications, making it less responsive to short-term price variations. Overall, the results are in line with earlier studies, as price increases are correlated with improved urban air quality for transport fuels.en
dc.identifierhttp://documents.worldbank.org/curated/en/099413104072329965/IDU01315f09006dcb0446f0a43f0e575d7e57437
dc.identifier.doi10.1596/1813-9450-10397
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39670
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10397
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectENERGY SUBSIDIES
dc.subjectAIR POLLUTION
dc.subjectFUEL SUBSIDIES
dc.subjectECONOMIC STATISTICS
dc.subjectFOSSIL FUEL PRICES
dc.subjectENVIRONMENTAL IMPACT
dc.subjectAIR POLLUTION REDUCTION
dc.titleFossil Fuel Prices and Air Pollutionen
dc.title.alternativeDetox Development: Repurposing Environmentally Harmful Subsidies - Background Paperen
dc.title.subtitleEvidence from a Panel of 133 Countriesen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleFossil Fuel Prices and Air Pollution: Evidence from a Panel of 133 Countries
okr.date.disclosure2023-04-07
okr.date.lastmodified2023-04-07T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099413104072329965/IDU01315f09006dcb0446f0a43f0e575d7e57437
okr.guid099413104072329965
okr.identifier.docmidIDU-1315f090-6dcb-446f-a43f-e575d7e57437
okr.identifier.doi10.1596/1813-9450-10397
okr.identifier.externaldocumentum34037412
okr.identifier.internaldocumentum34037412
okr.identifier.reportWPS10397
okr.import.id382
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099413104072329965/pdf/IDU01315f09006dcb0446f0a43f0e575d7e57437.pdfen
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicEnvironment::Pollution Management & Control
okr.topicEnvironment::Air Quality & Clean Air
okr.topicMacroeconomics and Economic Growth::Climate Change Economics
okr.unitGGSVP Chief Economist (GGSCE)
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