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Uncertainty in optimal pollution levels: Modeling the benefit area

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  • Halkos, George

Abstract

This paper identifies the optimal pollution level under the assumptions of linear, quadratic and exponential damage and abatement cost functions and investigates analytically the certain restrictions that the existence of this optimal level requires. The evaluation of the benefit area is discussed and the mathematical formulation provides the appropriate methods, so that to be calculated. The positive, at least from a theoretical point of view, is that both the quadratic and the exponential case obey to the same form of evaluating the benefit area. These benefit area estimations can be used as indexes between different rival policies and depending on the environmental problem the policy that produces the maximum area will be the beneficial policy.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47768.

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Date of creation: Jun 2013
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Handle: RePEc:pra:mprapa:47768

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Keywords: Benefit area; damage cost; abatement cost; pollution.;

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  29. Halkos, George, 2000. "Determining optimal air quality standards: Quantities or prices?," MPRA Paper 42849, University Library of Munich, Germany.
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