Transcript CHAPTER6 MAKING DECISIONS ABOUT ENVIRONMENTAL PROGRAMS ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

CHAPTER6
MAKING DECISIONS ABOUT
ENVIRONMENTAL PROGRAMS
ENVIRONMENTAL ECONOMICS – 2e
Charles D. Kolstad
Copyright © 2011 by Oxford University Press, Inc.
FIGURE 6.1 Total surplus from control of particulate emissions (particulate abatement). q*, surplus
maximizing amount of particulate abatement; ABCDE, resulting surplus; ABDE, surplus from quantity
restriction to q1.
ENVIRONMENTAL ECONOMICS – 2e
Charles D. Kolstad
Copyright © 2011 by Oxford University Press, Inc.
FIGURE 6.2 Effect of a tax on particulate abatement. q*, efficient
amount of abatement; q1, amount of abatement with $1 unit tax.
ENVIRONMENTAL ECONOMICS – 2e
Charles D. Kolstad
Copyright © 2011 by Oxford University Press, Inc.
FIGURE 6.3 Benefit–Cost analysis of pollution (TSP) reduction in Baltimore. Supply and demand for (a) pollution (Adapted
from Oates et al., 1989) and (b) pollution control (electrostatic precipitators).
ENVIRONMENTAL ECONOMICS – 2e
Charles D. Kolstad
Copyright © 2011 by Oxford University Press, Inc.
FIGURE 6.4 Market determination of discount factor.
ENVIRONMENTAL ECONOMICS – 2e
Charles D. Kolstad
Copyright © 2011 by Oxford University Press, Inc.
FIGURE 6.5 The effect of a regulation on the cement industry.
ENVIRONMENTAL ECONOMICS – 2e
Charles D. Kolstad
Copyright © 2011 by Oxford University Press, Inc.