Open AccessTHE RELATIVE EFFICIENCY OF DIFFERENT STANDARDS WHEN FIRMS VARY
Author(s) -
Helfand Gloria E.
Publication year - 1993
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.1939-7445.1993.tb00149.x
Subject(s) - pollution , environmental standard , economics , unit (ring theory) , environmental economics , natural resource economics , environmental science , business , econometrics , mathematics , ecology , mathematics education , biology
Pollution standards in practice take many forms, such as measuring pollution per unit of output rather than just restricting pollution. This paper uses simulations to provide some evidence on the effects of these two forms of standards when firms vary. For the cases studied, it shows that a pollution standard can lead to higher profits, but a pollution‐per‐output standard leads to higher output and lower price; the overall efficiency effects are therefore ambiguous.