Category Archives: Pollution

Pollution Control and Output

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

Posted in Pollution | Tagged , , , , , | Leave a comment

The Economics of Urban Rainwater

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

Posted in Cities, Pollution, Water | Tagged , , , , , , , , , , | Leave a comment

Reducing Pollution with a Combined Tax and Subsidy

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

Posted in Pollution | Tagged , , , | Leave a comment