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Methods of pollution control and the rate of change in pollution abatement technology
Author(s) -
Wenders John T.
Publication year - 1975
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/wr011i003p00393
Subject(s) - pollution , subsidy , pollutant , incentive , control (management) , natural resource economics , environmental science , environmental economics , business , economics , microeconomics , ecology , chemistry , biology , management , organic chemistry , market economy
This paper analyzes the impact of an improvement in pollution abatement technology on the costs of a firm producing under three alternative methods of pollution control: tax, subsidy, and emission standards. It is shown that the cost reduction to the firm will be greatest if the firm is operating under the pollutant tax method of pollution control, and therefore it is concluded that the incentive to improve pollution abatement technology will be greater if pollutant taxes are used to control pollution. In addition, it is shown that firms operating under emission standards or subsidy may have no economic inducement to produce some innovations in pollution abatement.