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Category Archives: Pollution
The behaviour on which revealed preference valuation methods are based almost inevitably results from thought processes involving bounded rationality. What does that imply for such methods? The insights of behavioural economics have been applied to many sub-fields of economics, and … Continue reading
Discussions of pollution control often focus on abatement technologies. But that’s only half the picture. Suppose a profit-maximising firm is producing and selling a good, but the production process emits a pollutant. In the absence of policy intervention, it will … Continue reading
Lack of natural drainage in urban environments can lead to flooding and pollution. Economics can help find appropriate solutions. There is a furore in Maryland, USA, where many residents will soon have to pay a “stormwater management fee” based on … Continue reading
Commonly discussed options for reducing pollution at minimum economic cost are taxes, subsidies and marketable permits. A combined tax and subsidy should be added to this list. Suppose a government wants to reduce an industry’s emissions of a pollutant to … Continue reading