EC238 Chapter Notes - Chapter 9: Polluter Pays Principle
Document Summary
Ability achieve efficient and cost effective abatement. Incentives to innovate and find better ways to reduce emissions. Different but related concepts: move economy to point where marginal abatement = marginal damage cost, maximize total social benefits, difficult to achieve: Political reasons as well: achieve low pollution target level while minimizing abatement costs. Socially efficient will be cost effective but cost effective won"t always be socially efficient. Policies need to take into consideration people of all income levels. Ability to lead to long-run improvement in reducing emissions. Pollution control firms create: recycling techniques, pollution control equipment, pollution control monitoring technology. Develop new technologies: to reduce marginal abatement costs. How easy it is to monitor emissions and to impose sanctions. Different policies need different data to make policy enforceable. How to implement things due to limited budgets. Citizens can assist through citizen suits: legal cases brought by private citizens/people against polluters, just need to prove violating environmental statue (rules)
