Question

The Ministry of Natural Resources and Environment of your country steps up measures to control the pollution and hires you as an environmental economist to estimate costs associated with pollution control as the industries located along a river discharge highly toxic effluents into the river. What approaches and relevant issues will you take into considerations when estimating the pollution abatement costs? *10 marks question . Need explanations and diagrams tq*

Answer 1

The Ministry of Natural Resources and Environment of your country steps up measures to control the pollution and hires you as an environmental economist to estimate costs associated with pollution control as the industries located along a river discharge highly toxic effluents into the river. What approaches and relevant issues will you take into considerations when estimating the pollution abatement costs? *10 marks question . Need explanations and diagrams tq*

Answer: there will be two things that need to be taken into consideration suppose if there are pollution generating industry which is causing pollution and pollute environment in this case marginal social sacrifice is very lagre as compare to marginal social benefit as a economist if I want to reduce pollution than there is need for imposing taxes on those industries generating pollution and there is also need of auction of license so that they can prouduce only that much amount which will not pollute river water. Diagram for above answer explained below

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