What are the key types of pollution in environmental policy?
Flow pollution: Damage only occurs when pollutants are emitted. Stops once emissions cease.
Stock pollution: Damage depends on accumulated stock of pollutant, even if emissions stop.
What is the goal of pollution control?
Determine the optimal level of pollution and choose suitable instruments to achieve this target.
Define flow pollution.
Pollution caused by the flow of pollutants (e.g., noise). Eliminated by stopping emissions.
Define stock pollution.
Pollution damage depends on accumulated pollutant stock, persists beyond emission stoppage (e.g., heavy metals).
What are efficiency targets in pollution control?
Optimal pollution level balances benefits of production against pollution damages.
How is the efficient pollution level determined?
Set at point where marginal benefits equal marginal costs of pollution.
What are the implications of stock pollution?
- Accumulated impact: Pollution stock accumulates over time.
- Inertia: Fixing emissions does not stabilise pollution due to stock dynamics.
What does the concept of a shadow price signify in pollution control?
A hypothetical price that represents the cost of pollution in absence of a market for pollutants.
What factors determine efficiency in stock-pollution control?
- Knowledge of benefits/damages
- Biophysical absorption laws
- Abatement technology efficiency
Why is delayed action in pollution control costly?
Leads to higher accumulated pollution, raising costs to return to an optimal pollution path.
