Growing car ownership in LDCs: The impact on the environment and trade

Abstract

Kahn recently completed a study with Suzi Kerr, sponsored by the Harvard Institute for International Development, on the causes and consequences of air pollution in Santiago, Chile. They explained how local air pollution in Santiago is linked to income growth. Although the rising number of cars indicates that the people of Santiago have become wealthier, the environment and the government are ill prepared for the consequences of increased air pollution, particularly for a lower quality of life, Kahn discusses the problem of growing car ownership rates in LDCs in a larger, global context, and lends insights into its implications for future trade with these countries.