Creating a market for reduced carbon monoxide emissions from mobile sources

Marginal cost curves are developed for carbon monoxide abatement from mobile sources through the use of a hypothetical incentive program. Highway toll discounts are provided to drivers who install abatement devices beyond those required to comply with state emissions standards. With participation rates and toll demand derived from data on the Garden State Parkway, New Jersey, marginal costs would be $78 per ton CO to abate emissions from current stationary sources, and would require a toll discount of $0.015 per toll. Marginal costs increase due to the inelastic demand for transportation services (tolls) from the Parkway.