learning objectivesAfter reading this chapter you will be familiar with the following:
• the main features of the pollution control (abatement) cost function;
• the main features of the pollution damage cost function;
• the trade-off between pollution control and pollution damage costs;
• the optimal level of pollution;
• how a change in consumers’ preference for environmental quality affects the optimal level of pollution;
• how a change in technology affects the cost of pollution control and the optimal level of pollution;
• an alternative explanation of market failure and its policy implications;
• the optimal pollution strategy: an ecological appraisal.
Pollution cleanup is better than doing nothing, but pollution prevention is the best way to walk more gently on the earth.