Uncertainty in optimal pollution levels: Modeling the benefit area

George Halkos

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Benefit area; damage cost; abatement cost; pollution. (search for similar items in EconPapers)
JEL-codes: C02 C62 Q51 Q52 Q53 (search for similar items in EconPapers)
Date: 2013-06
New Economics Papers: this item is included in nep-ene, nep-env, nep-reg and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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