Premium
A multilevel approach to determining optimal taxation for the abatement of water pollution
Author(s) -
Haimes Yacov Y.,
Kaplan Michael A.,
Husar Michael A.
Publication year - 1972
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/wr008i004p00851
Subject(s) - miami , environmental science , water quality , structural basin , pollution , quality (philosophy) , effluent , computer science , water resource management , environmental economics , environmental engineering , economics , geology , ecology , biology , paleontology , philosophy , epistemology , soil science
Regional water quality management by a three‐level optimization approach is developed. Proposing the construction of a regional treatment plant, the central authority determines simultaneously the optimal treatment configuration for meeting water quality standards along a river basin and the optimal effluent charges necessary to realize this configuration. The optimal regional plant capacity and regional treatment level are also found, depending on which polluters decide to use the regional facilities. It is assumed that the central authority does not need to know the local treatment cost functions. Numerical results from simulated use of the technique with data for the Miami River basin reveal the efficiency and the effectiveness of the multilevel approach. Considerable savings over local treatment alone can be realized by employing regional treatment facilities.