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Uncertainty in optimal pollution levels: Modeling the benefit area

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  • Halkos, George

Abstract

This paper identifies the optimal pollution level under the assumptions of linear, quadratic and exponential damage and abatement cost functions and investigates analytically the certain restrictions that the existence of this optimal level requires. The evaluation of the benefit area is discussed and the mathematical formulation provides the appropriate methods, so that to be calculated. The positive, at least from a theoretical point of view, is that both the quadratic and the exponential case obey to the same form of evaluating the benefit area. These benefit area estimations can be used as indexes between different rival policies and depending on the environmental problem the policy that produces the maximum area will be the beneficial policy.

Suggested Citation

  • Halkos, George, 2013. "Uncertainty in optimal pollution levels: Modeling the benefit area," MPRA Paper 47768, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:47768
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    Cited by:

    1. Halkos, George, 2014. "The Economics of Climate Change Policy: Critical review and future policy directions," MPRA Paper 56841, University Library of Munich, Germany.
    2. Halkos, George & Kitsou, Dimitra, 2014. "A weighted location differential tax method in environmental problems," MPRA Paper 59502, University Library of Munich, Germany.

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    More about this item

    Keywords

    Benefit area; damage cost; abatement cost; pollution.;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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