The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org.

This paper evaluates the welfare effects of in situ slum upgrading and relocation programs using data for 5000 households in Mumbai, India. We estimate a model of residential location choice in which households value the ethnic composition of neighborhoods and employment accessibility in addition to housing characteristics. The importance of neighborhood composition and employment access implies that relocation programs must be designed carefully if they are to be welfare-enhancing. The value of our model is that it allows us to determine the magnitude of these effects. It also allows us to determine the value households place on in situ improvements, which policymakers need to know if they are to design housing programs that permit cost recovery.

This paper examines the impacts of measures to reduce emissions from buses, cars, and two-wheelers in Mumbai, India. We have considered three possible policies: conversion of diesel buses to CNG, an increase in the price of gasoline and a tax on vehicle ownership.Our results suggest that the most effective policy to reduce emissions from passenger vehicles-in terms of the total number of tons of PM10 reduced-is to convert diesel buses to CNG. The conversion of 3,391 diesel buses to CNG would result in an emissions reduction of 663 tons of PM10 per year, 14 percent of total emissions from transport.

This paper examines the impacts of measures to reduce emissions from buses, cars, and two-wheelers in Mumbai, India. We have considered three possible policies: conversion of diesel buses to CNG, an increase in the price of gasoline and a tax on vehicle ownership. Copyright Blackwell Publishing, Inc. 2007

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