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Optimal Abatement in Dynamic Multipollutant Problems when Pollutants can be Complements or Substitutes

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  • Moslener, Ulf
  • Requate, Till

Abstract

We analyze a dynamic multi-pollutant problem where abatement costs of several pollutants are not separable. The pollutants can be either technological substitutes or complements. Environmental damage is induced by the stock of accumulated pollution. We find that optimal emission paths are qualitatively different for substitutes and complements. We derive general properties governing optimal emission paths and present numerical examples to illustrate our main results. In particular we find that optimal emission paths need not be monotonic, even for highly symmetric pollutants. Finally, we describe a comparatively simple method to implement the optimal path without explicitly knowing its shape.

Suggested Citation

  • Moslener, Ulf & Requate, Till, 2005. "Optimal Abatement in Dynamic Multipollutant Problems when Pollutants can be Complements or Substitutes," Economics Working Papers 2005-03, Christian-Albrechts-University of Kiel, Department of Economics.
    • Handle: RePEc:zbw:cauewp:2913
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    References listed on IDEAS

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    More about this item

    Keywords

    Multi-pollution; abatement technology; accumulating pollutants;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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