Equity and the environment: An application of the Berliant–Strauss vertical and horizontal equity framework to measuring the distributional effects of air quality regulation

• Author: Robert P. Strauss,Jinhyok Heo
• DOI: http://doi.org/10.1111/ijet.12255
• Date: 01 March 2020
• Published date: 01 March 2020

Int J Econ Theory. 2020;16:82–94.wileyonlinelibrary.com/journal/ijet82

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© 2020 IAET

Received: 22 February 2019

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Accepted: 16 August 2019

DOI: 10.1111/ijet.12255

ORIGINAL ARTICLE

Equity and the environment: An application of

the Berliant–Strauss vertical and horizontal

equity framework to measuring the

distributional effects of air quality regulation

Jinhyok Heo

1

|Robert P. Strauss

2

1

Center for Atmospheric Particle Studies,

Carnegie Mellon University, Pittsburgh,

Pennsylvania

2

The Heinz School of Public Policy and

Management, Carnegie Mellon University,

Pittsburgh, Pennsylvania

Correspondence

Robert P. Strauss, The Heinz School

of Public Policy and Management,

Carnegie Mellon University, Pittsburgh,

Pennsylvania 15213.

Email: rs9f@andrew.cmu.edu

Abstract

The distributional effects of a major air regulation in

the United State in 2015 were analyzed using Berliant

and Strauss Index Numbers, a set of theoretical and

empirical equity metrics, and reduced‐form models

that estimate the mortality effects of air pollutant

emissions and their source contributions. By viewing

the effects of pollution on human mortality as an

implicit tax, we found progressivity in 54% to 56% of

vertical comparisons and inequity in 92% to 94% of

horizontal comparisons. The introduction of the

proposed policy made 58% of vertical comparisons

more progressive and was equitable to 70% of

horizontal comparisons.

KEYWORDS

distributional effect, fine particulate matter, horizontal equity,

PM

2.5

, public health effects, vertical equity

JEL CLASSIFICATION

D62; D63; H22; H23; Q52; Q53; Q56

1|INTRODUCTION

From a social accounting perspective, the analysis of changes in environmental policy is usually

divided into three parts: first, ascertaining the effects of such policy changes on different types

of environmental pollution (e.g., air, water, land, and so on) and their subsequent impact on

human health (usually measured by changes in mortality and/or morbidity) and the natural