Interaction between local air pollution and global warming and its policy implications for Belgium

In this paper, we study the policy interactions between meeting a greenhouse gas emission constraint and local air pollution policies. We use a partial equilibrium model of a national energy market to address three questions. Firstly, what is the greenhouse gas emission reduction one can expect if one pursues local air pollution objectives only? Secondly, what ancillary air pollution benefits can be expected if the only policy goal is to reduce the emission of greenhouse gases? Thirdly, what are the efficiency gains if both policy goals are pursued jointly?