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POLLUTION AND RESOURCE ALLOCATION *
Author(s) -
Chisholm Anthony H.,
Walsh Cliff,
Brennan Geoffrey
Publication year - 1974
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1974.tb00124.x
Subject(s) - consumption (sociology) , subsidy , pollution , environmental economics , resource allocation , natural resource economics , control (management) , politics , economics , business , public economics , market economy , political science , ecology , social science , management , sociology , law , biology
Our economic perspective of the pollution problem characterizes that problem as involving a conflict between the consumption of two broad classes of goods–physical (or produced) commodities and the direct consumption of 'clean environment'. After considering the relative merits of market and political decision‐making processes used to achieve appropriate social choices between the consumption of physical goods and 'clean environment', we focus on the alternative policy options for pollution control. The main conclusion we reach is that, in general, fiscal instruments (taxes and subsidies) are a more efficient means of controlling pollution than the widespread use of regulations or other legal instruments.