Exam 4: The Economic Theory of Pollution Control

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Restoration of a river affected by acid rain is an example of a pollution control cost.

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As to the extent possible, pollution damage costs should be expressed in monetary terms.

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Generally, damage costs are expected to be an increasing function of pollution.

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Waste disposal costs originate from two sources: pollution control cost and pollution damage cost.

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With pollution control costs, there will be no difference between private and social costs.

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