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Efficiency and Substitution in Pollution Abatement

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  • Cavendish, William
  • Anderson, Dennis

Abstract

This paper examines the relative contributions of three factors to economic efficiency and pollution abatement. The first is price efficiency, achieved through the removal of unnecessary subsidies--surprisingly widespread--for polluting activities; the second, managerial efficiency; and the third, substitution towards low-polluting practices. The first two so-called 'win-win' options often lead to large gains in economic efficiency but to secondary effects on pollution abatement, and the third to large effects on pollution abatement and gains in economic efficiency via the reduction of external costs. The case of electricity supply in developing countries is studied using a simulation model. Copyright 1994 by Royal Economic Society.

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  • Cavendish, William & Anderson, Dennis, 1994. "Efficiency and Substitution in Pollution Abatement," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 774-799, Supplemen.
    • Handle: RePEc:oup:oxecpp:v:46:y:1994:i:0:p:774-99
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    Cited by:

    1. Yolande Hiriart, 2004. "Aspects stratégiques d'une politique environnementale incitative," Recherches économiques de Louvain, De Boeck Université, vol. 70(1), pages 53-77.
    2. Adrián Saldarriaga-Isaza, C. & Vergara, Carlos, 2009. "Who switches to hybrids? A study of a fuel conversion program in Colombia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 572-579, June.

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