Open AccessOPTIMAL TAXES FOR POLLUTION REGULATION: DYNAMIC, SPATIAL AND STOCHASTIC CHARACTERISTICS
Author(s) -
Xepapadeas A.
Publication year - 1992
Publication title -
natural resource modeling
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.28
H-Index - 32
eISSN - 1939-7445
pISSN - 0890-8575
DOI - 10.1111/j.1939-7445.1992.tb00272.x
Subject(s) - pollution , production (economics) , resource (disambiguation) , environmental science , resource allocation , mathematical optimization , natural resource economics , economics , computer science , mathematics , microeconomics , ecology , market economy , computer network , biology
The paper develops a model that incorporates the dynamic, spatial and stochastic aspects of environmental pollution. Conditions for optimal resource allocation between output production and pollution abatement processes are derived. Optimal emission (Pigouvian) taxes which may be used to efficiently regulate pollution in each region are determined. The pattern of emission taxes over time and their relative sizes among different regions are additionally explored with the help of a simplified numerical example.