ABSTRACT
The distribution of all goods and services across income groups is one dimension of equity which has received substantial attention. The incidence of the cost of abatement of the air pollution from a power plant is difficult to determine precisely. The problem is similar to calculating the incidence of a sales tax on electricity. An uncontrolled coal burning power plant located in cwould impose no abatement costs. The air pollution from such a plant, on the other hand, would have serious effects on all income classes. Low income families regain more days lost than higher income families from controlling air pollution. The distribution of non-health damages across racial groups is difficult to determine without detailed data about the material and vegetation assets each holds. Non-health damages are concentrated within the utility’s customer service area far more than health damages. Distant individuals receive more health benefits from hardware controls in general than from dispersion.
