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The Technology of Pollution Avoidance by Firms

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  • Kohn, Robert E

Abstract

The technology of avoidance is examined in the context of a general equilibrium model of production. To reduce their exposure to pollution, it is assumed that firms require more inputs for avoidance the larger their output and, following H. Shibata and J. S. Winrich (1983), more inputs for avoidance the lower the pollutant concentration. The former assumption has the consequence that firms may operate under increasing returns to scale. The latter assumption, in the extreme, could imply a special case in which the efficient tax on emissions is negative, that is, a subsidy. This extreme case is ruled out by chemical principles.

Suggested Citation

  • Kohn, Robert E, 1987. "The Technology of Pollution Avoidance by Firms," Public Finance = Finances publiques, , vol. 42(3), pages 384-394.
    • Handle: RePEc:pfi:pubfin:v:42:y:1987:i:3:p:384-94
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    Cited by:

    1. Kohn, Robert E., 1997. "The effect of emission taxes and abatement subsidies on market structure: Comment," International Journal of Industrial Organization, Elsevier, vol. 15(5), pages 617-628, August.
    2. Robert E. Kohn, 1988. "The HQ Production Function," The Economic Record, The Economic Society of Australia, vol. 64(2), pages 133-135, June.

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