TAILIEUCHUNG - Air pollution and the macroeconomy across European countries

Peter Farmer reported having received remuneration for consultancy from a commercial entity or other organization with an interest related to the subject of air pollution. Matti Jantunen and Naohide Shinohara reported having received remuneration for consulting from a commercial entity or other organization with an interest related to the subject of air pollution and having received research support from a commercial entity or other organization with an interest related to the subject of air pollution. Paul Harrison reported him or his research unit having received support for re- search from a commercial entity or other organization with an interest related to. | Air pollution and the macroeconomy across European countries by Francisco Alvarez Gustavo A. Marrero Luis A. Puch DOCUMENTO DE TRABAJO 2005-10 May 2005 Universidad Complutense de Madrid and ICAE. FEDEA Universidad Complutense de Madrid and ICAE. Los Documentos de trabajo se distribuyen gratuitamente a las Universidades e Instituciones de Investigación que lo solicitan. No obstante están disponibles en texto completo a través de Internet http . hojas Documentos de Trabajo These Working Documents are distributed free of charge to University Department and other Research Centres. They are also available through Internet http hojas Documentos de Trabajo Depósito Legal M-13856-2005 Air Pollution and the Macroeconomy across European Countries Francisco Alvarez Gustavo A. Marrero and Luis A. Puch July 2005 Abstract This paper analyzes the role of macroeconomic performance in shaping the evolution of air pollutants in a panel of European countries from 1990 to 2000. The analysis is addressed in connection with EU environmental regulation. We start by documenting the patterns of cross-country differences among different pollutants. We then interpret these differences within a neoclassical growth model with pollution. Three main pieces of evidence are presented. First we analyze the existence of convergence of pollution levels within European economies. Second we rank countries according to its performance in terms of emissions and growth. Third we evaluate the evolution of emissions in terms of the targets signed for 2010. Key words Economic Growth Air Pollution Europe s environmental policy integration JEL O40 Q50 E10 O52 Alvarez Universidad Complutense de Madrid Marrero Universidad Complutense de Madrid and ICAE Puch FEDEA Universidad Complutense de Madrid and ICAE. We thank participants at the 2nd Economic Dynamics and the Environment Workshop the SAE 04 and seminars at Santiago and UcL. This research has .

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