Economics 3220 Lecture Notes - Emission Standard, Catalytic Converter
Document Summary
Standards can be of three types: emission standards. Usually applied directly to the quantity of emissions coming from pollution sources. Emissions standards for new cars in canada: ambient standards. Usually applied to the average concentration of a pollutant in the air, water or soil over a geographic region. Air quality over a city: technology standards. Strict requirements of pollution control technologies that polluters must install, Smoke stack scrubbers for industries to reduce so2. Suppose the government somehow determined the emission/abatement concentration standard at the socially optimal level of emissions where. Using the diagram determine the net benefits to society from this emission/ambient standards: without standard: Reduce emission to e* level or face penalty. Tsc= a+b: savings in tsc when compliant with standard. #1- efficient and cost effective: yes, if the government has perfect knowledge of the mac and md curves. #2 fair/equitable: yes, polluters are paying for the damage.
