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AGRB Chapter 7
Chapter 7 Terminology
| Term | Definition | Definition | Definition |
|---|---|---|---|
| Environmental Tolerance | Define Pollutants by the ability of the environment to absorb the pollutant (environment absorptive capacity) | FIRST Pollutant Taxonomy | |
| Stock pollutants | are pollutants for which the environment has little or no absorptive capacity | create burdens for future generations as they often decay slowly and remain in the environment for a long time | immediately begin with the first released emission and increase as the pollutant accumulates in the environment. |
| Fund Pollutants | are pollutants for which the environment has SOME absorptive capacity. | the first few emissions from a fund pollutant may not be harmful to the environment, but after they reach the threshold, they increase a lot more | |
| Spatial Impact | Pollutants that are classified by area of geographic impact | SECOND Pollutant Taxonomy | |
| Local Pollutants | cause damage near the source | ||
| Regional & Global Pollutants | cause damage at distances up to 1000 miles from their emission source. (regional) | have worldwide impacts (global) | |
| How Enters Environment | Pollutants are also classified as either point source or nonpoint source pollutants | THIRD Pollutant Taxonomy | |
| Point Source Pollutants | Location of pollutant emission source is easily identifiable | ex: smokestack, chemical discharge by pipe | |
| Non-Point Source Pollutants | Emissions from diffuse sources are NOT easily identifiable | ex: fertilizer runoff, auto emissions | |
| Zone of Influence | pollutants have a zone of damage/influence and/or a vertical zone of damage/influence | ||
| Horizontal ZOI | refers to the geographic scope of the area impacted by the pollution emission | surface pollutants cause damage near the earth's surface | |
| Vertical ZOI | refers to whether most pollution damage is incurred at ground level (chemical discharge) or if damages accumulate in the upper atmosphere (GHG) | Regional & global pollutants cause most damage in the upper atmosphere | |
| Efficient Allocation of Pollution | 1) Marginal Env. Damage cost | 2) Marginal Control Cost | The total Social cost minimizing sol. for a pollutant is MD=MCC |
| Control Cost | the dollar expenditures on pollution control | Have an OC but are not externalities | |
| Pollution Control efficiency | achieved when MCC=MD | Avoided MD = MB | |
| Efficient Policy Response | legal limit on the # of pollution emitted (regulatory/command-control policy) | Market-based incentive approach: causes each firm to internalize their MD cost | |
| Marginal Control Cost Function | cost of achieving one additional unit of pollution reduction | measures the $ cost to achieve one additional unit of pollution reduction | increases as the level of control increases |
| Why does MCC increase with the level of control | It becomes more costly to reduce each additional emission | ||
| Marginal Damage Function | provides $ measure for incremental damage associated with each additional pollution unit released into the environment | MD increases with each additional emission | |
| Minimum total social cost | requires MCC=MD | the sum of Total Damage cost + Total Control Cost | |
| Efficient Emission Reduction | equal to Eu - E1 |
Created by:
amcarra
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