Econ ch 12

The concentration of a pollutant in the environment

The least costly way to meet an abatement target

A technically practical way to abate

The costs of abating a specified amount are at their minimum when all sources of pollution have equal marginal costs of abatement

Direct commands to firms which are controlled to ensure compliance

Restricts the use of an input to production. Ex- lead

directs producers to use a specific technology or process. Ex- smokestack scrubbers

Requires a source to emit no more than a given amount of effluent or rate of effluent

A standard that is set based on the effluent levels that would be emitted if a known technology were used

Specify the concentration of pollution that is acceptable in the environment

Emits its effluent from and identifiable point like a drainage pipe

Occurs when it is either impossible to see the emissions or when the emissions travel a long way before the settle, cannot be easily traced

Use incentives to encourage a change in behavior rather than requiring firms to undertake specific behavior

A requirement to pay a set price for every unit of pollution that a source emits

A payment as an incentive to change behavior

The buying and selling of pollution permits. Regulator caps number of permits, assigns or auctions permits, and then firms buy and sell amongst each other

An additional quantity of a pollutant that a firm is allowed to emit if the firm ensures that emissions outside it own operations are reduced by the same amount