Estimation of Shadow Prices for Environmental Pollutions CO2، Nox & SO2 in Transportation Sector

Regarding necessity the scientific and clear criteria utilization for evaluating environmental costs، this research estimated a stochastic output distance function by measuring the environmental pollution parameters via analyzing in the transportation sector، as well as collecting the survey inputs and outputs production data. According to the Pigou’s theory which says each polluter should pay the costs of its pollution، given the lack of appropriate analytical methods for environmental policymaking، in this paper we made an estimate of shadow prices for environmental pollutions resulting from fossil fuel consumption in transportation sector. Accordingly، the average shadow prices in the transportation sector during the period of time from 1357 to 1389 for pollutants including nitrogen oxides (NOx) is equal to -121469. 7 rials per ton-kilometer، sulfur dioxide (SO2) is equal to -131936. 9 rials per ton-kilometer and for carbon dioxide (CO2) is equal to -488. 4381 rials per ton-kilometer. These results suggested as a basic measure for planning to environmental policymakers to have a better knowledge of related economical-environmental effects of transportation sector and environmental costs.