The Economics of Emissions of a Flow Pollutant

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This Demonstration shows marginal private profit and marginal external damage cost as functions of emissions of a flow pollutant linked to production of a good. The negative effects of the pollution are not included in the private optimum solution (emission level 1). Green and red areas indicate positive and negative profits, respectively.

Contributed by: Arne Eide (December 2013)
Open content licensed under CC BY-NC-SA


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