Taiwan has implemented a floating oil-price mechanism since 2007, which is aimed at connecting the domestic oil price with the international oil price. Given that the consumers’behavior may change once the price truly responds to its cost and the air quality may consequently be improved, this study investigates the effect of oil price on the concentration of 7 air pollutants, taking the adoption of new price system into account. The results show that pollution is not necessarily reducing associated with the increasing energy cost in Taiwan.
關聯:
International Journal of Applied Economics, 12(2), 104-125
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