Tag Archives: marginal abatement cost

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

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The Economics of a Carbon Tax

A carbon tax can be an effective policy for reducing emissions.  It also affects output and social welfare. Like many economists I am fond of diagrams.  I feel I understand a piece of economics when I see it expressed in … Continue reading

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