Analysis of the Policy to Reduce Ozone Emissions in Mexico City

Abstract: This paper analyzes the effectiveness of the policy to reduce and control tropospheric ozone emissions in Mexico City. We analyze the institutional structure of this policy, which consists of restricting the circulation of some vehicles according to the rate at which they emit certain pollutants, but does not seek to determine the social cost of those emissions. The empirical estimation of maximum concentrations of ozone concerning the determinants indicated by the three official programs of this policy shows that the factors of the environment (maximum temperature mainly, and to a lesser degree rainfall), explain the formation of this gas, while gasoline and diesel consumption are not significant determinants of it. We concluded that the policy is ineffective in achieving its objectives of reducing and controlling ozone pollution. The reevaluation of Mexico City development policy is required to address environmental pollution issues.

Key words: local government; environmental health and safety; air pollution; emission control

JEL codes: H700, Q510, Q530, Q580