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Linear and non-linear economic models of pollution

1. The idea of pollution is elucidated, historically and currently; pollutants are classified analytically; the estimation of social costs and benefits from abatement are discussed. Static micro-models of pollution involving pollution as a joint output, as a factor of production and as an input to recycling activity are developed, and comparative static analysis on each is performed. A brief consideration of the effects of exogenous technological change is made. Pollution considered as a dynamic phenomenon using a time-dependent pollution stock and decay rate independent of the stock level. A novel social damage function with positive damage at a positive pollution threshold is postulated, and the Planning Authority's optimal control problem of maximising production benefits net of pollution costs is solved for the various possible trajectories pf pollution tax and pollution stock. It is shown that society will not always prefer a decreasing quantity of pollution over time especially if it starts in the pre-threshold range of the stock. In this context it may be considered optimal to let transversality determine the final pollution stock thereby implying a zero final shadow price. 2. Various linear economic models (Leontief, Stone input-output and Activity Analysis) are expounded and developed where necessary, and their theoretical underpinnings criticised on purely economic criteria. The adaptation of these models to the study of economic-environmental interactions, specifically air pollution, is examined. Several recent developments in this area are expounded and criticised and some alternative models and techniques evolved. (Activity Analysis models are developed, the concepts of commodity and industry ecology in the Stone system are analysed, and a short-run technique for shadow pricing of ecologic commodities in the absence of data on abatement is evolved). 3. Leontief-Stone economic-environmental Input-Output is applied to a 90-sector, 12-pollutant model of the UK in an excercise in the methodology of pollution control. Data on pollutants initially derived from American sources is subjected to various statistical adjustment procedures based on knowledge of control efficiencies applicable to the UK. Ecologic Impact Tables for 90 economic commodities with respect to the pollutants are calculated, and for a subset the rankings of commodities for each pollutant are tested for correlation.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:645137
Date January 1978
CreatorsCressy, R. C.
PublisherUniversity of Edinburgh
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation
Sourcehttp://hdl.handle.net/1842/17128

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