Effluent Charges versus Effluent Standards

Karl-Göran Mäler

Chapter 6 in The Management of Water Quality and the Environment, 1974, pp 189-223 from Palgrave Macmillan

Abstract: Abstract In their book, Managing Water Quality [6], Kneese and Bower suggested that the use of effluent charges may be more efficient than the use of regulations in environmental policy. The reason for this is that charges induce those firms, for whom it is cheap to reduce activities harmful to the environment, to undertake large-scale reductions, while higher-cost firms are induced to undertake only lesser reductions. This argument was formulated mathematically by Baumol and Oates [2], and they proved rigorously that under certain assumptions effluent charges are efficient while effluent standards may be inefficient.

Keywords: Environmental Policy; Waste Treatment; Environmental Standard; Waste Load; Ambient Standard (search for similar items in EconPapers)
Date: 1974
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DOI: 10.1007/978-1-349-02151-2_6

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