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Economic Evaluation of Policy Options Available to Control Industrial Air Pollutants

Sathiendrakumar, R. (1993) Economic Evaluation of Policy Options Available to Control Industrial Air Pollutants. Murdoch University, Perth, Western Australia.


Matter can neither be created nor destroyed. But when matter is transformed from one state to another, in the process of production, the earth is not capable of absorbing and assimilating many waste that are dumped on it. This results in pollution. Furthermore, an increase in the level of pollution over time may create problems for sustainable economic development. Therefore, the society has to find ways and means to resolve the conflict, between the increase in production on the one hand and the preservation of the environment on the other, when considering the inter-generational equity with respect to environmental quality.

This paper deals with industrial air pollutant which is a fund pollutant. Fund pollutants are pollutants for which the environment has some absorptive capacity. Therefore the aim of pollution control, when dealing with air pollutants, is to keep the level of pollutants below the absorptive capacity of the environment. The paper deals with the various policy instruments, such as assigning property rights, common law, setting standards, Pigovian tax, subsidies and marketable pollution permits, that are available to control industrial air pollutants.

The criteria used in selecting the appropriate policy instruments are efficiency, acceptability, equity and flexibility. Based on these criteria the author is of the view that the marketable pollution permits stand well above the other policy instruments in controlling industrial air pollutants in both developed and developing countries

Item Type: Working Paper
Murdoch Affiliation(s): School of Commerce
Series Name: Department of Economics Working Papers
Publisher: Murdoch University
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