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The Use of Standards and Prices for Protection of the Environment

In: The Economics of Environment

Author

Listed:
  • William J. Baumol

    (Princeton University)

  • Wallace E. Oates

    (Princeton University)

Abstract

In the Pigouvian tradition, economists have frequently proposed the adoption of a system of unit taxes (or subsidies) to control externalities, where the tax on a particular activity is equal to the marginal social damage it generates. In practice, however, such an approach has rarely proved feasible because of our inability to measure marginal social damage.

Suggested Citation

  • William J. Baumol & Wallace E. Oates, 1971. "The Use of Standards and Prices for Protection of the Environment," Palgrave Macmillan Books, in: Peter Bohm & Allen V. Kneese (ed.), The Economics of Environment, pages 53-65, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-01379-1_4
    DOI: 10.1007/978-1-349-01379-1_4
    as

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