Question

Explain how multiple sources of emissions can be controlled by using the equimarginal principle.

Answer 1

Answer: Equimarginal principle states that if there are multiple sources of a particular type of pollutant with differing marginal abatement costs, and if it is desired to reduce aggregate emissions at the least possible cost (or alternatively, get the greatest reduction in emissions for a given cost), then emissions from the various sources must be reduced in accordance with the equimarginal principle.

For Example:

The Equimarginal Principle
Emissions(tons/Week)	Source A	Source B
12	0	0
11	1	2
10	2	4
9	3	6
8	4	10
7	5	14
6	6	20
5	8	25
4	10	31
3	14	38
2	24	58
1	38	94
0	70	160
Marginal Abatement Cost ($1,000/week)

Equiproportionate :

If Source A were cut 50 percent to 6 tons/week, its Marginal Abatement Cost at this level would be $6,000/week, whereas at this level of emissions the Marginal Abatement Cost of Source B would be $20,000/week.

Total abatement costs of the 12-ton total are $21,000/week for Source A and $56,000/week for Source B or a grand total of $77,000/week.

Equimarginal:

A and B must have different emission rates but together emit no more than 12 tons of effluent and have the same marginal abatement costs.

This condition is satisfied if Source A emits 4 tons and Source B emits 8 tons. These rates add up to 12 tons total and give each source a marginal abatement cost of $10,000/week.

TAC = $39,000/week for Source A

TAC = $22,000/week for Source B

TAC = $61,000/week grand total

So from above we can say pollution control can be cost-effective only when marginal abatement costs are equalized across sources. When marginal abatement costs differ among sources, as they almost always do, uniform standards cannot be cost-effective; individual standards are required.

therefore this how multiple sources of emissions can be controlled by using the equimarginal principle.