Containing rigorous hard evidence, this book is of immense practical use to postgraduates, researchers and business communities affected by or working in environmental regulation. The author, a leading name in the environmental economics community, examines the problem of urban smog in cityscapes and the difficulty of achieving cost-effective controls.

Analyzing the key areas of urban smog, low-level ozone and volatile organic compound emissions and their impact on health and welfare of communities this text assesses and evaluates the performance of emissions trading systems and suggests alternative market designs for incentive control of pollution. Taking a well-reasoned approach to the contentious area of the use of market incentives to achieve environmental goals, it provides a study of the pioneering cap-and-trade market, particularly focusing on its poor performance in Chicago.

A perfect supplementary text postgraduates and researchers, this is also an essential read for all those interested in environmental economics.

Containing rigorous hard evidence, this book is of immense practical use to postgraduates, researchers and business communities affected by or working in environmental regulation. The author, a leading name in the environmental economics community, examines the problem of urban smog in cityscapes and the difficulty of achieving cost-effective controls. Analyzing the key areas of urban smog, low-level ozone and volatile organic compound emissions and their impact on health and welfare of communities this text assesses and evaluates the performance of emissions trading systems and suggests alternative market designs for incentive control of pollution. Taking a well-reasoned approach to the contentious area of the use of market incentives to achieve environmental goals, it provides a study of the pioneering cap-and-trade market, particularly focusing on its poor performance in Chicago. A perfect supplementary text postgraduates and researchers, this is also an essential read for all those interested in environmental economics.

A simultaneous equations model is developed which endogenizes economic growth, income inequality, corruption, and political instability while using initial GDP, average schooling, investment share of GDP, population growth, educational inequality, trade share of GDP, and ethnolinguistic fractionalization as exogenous variables. Twenty-two different specifications of the model are then estimated using ordinary least squares (OLS), two-stage least squares (2SLS), and three-stage least squares (3SLS) estimation methods. Both the structural and reduced form estimates exhibit changing results for several variables as we switch from OLS to simultaneous methods. Therefore, it is inappropriate to use only OLS estimators when there may be feedback effects between variables. The OLS results may exhibit simultaneous bias and lead to incorrect policy recommendations if they are used without being compared to the results of simultaneous estimation methods. However, simultaneous estimators may also experience certain biases. Therefore, both OLS and simultaneous estimators must be used by researchers in order to determine the best course of policy.