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Author:Pethig, R.
Title:Non-linear production, abatement, pollution and materials balance reconsidered
Journal:Journal of Environmental Economics and Management
2006 : MAR, VOL. 51:2, p. 185-204
Index terms:materials
pollution
production
Language:eng
Abstract:This article suggests that production functions with emissions treated as inputs can be reconstructed as a subsystem of a comprehensive production-cum-abatement technology that is in line with the materials-balance principle. In a simple economy with full regard of the materials flow it also explores the consequences for allocative efficiency and efficiency-restoring taxation of multiple and interdependent residuals generated in the transformation processes of production, abatement and consumption. The authors argue that efficiency may require setting the emissions tax rate above or below conventionally defined marginal abatement cost if the residual subject to abatement is not the only residual causing pollution.
SCIMA record nr: 263155
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