damage and abatement cost functions

Optimal Pollution Level: A theoretical identification, Applied Economics, 37: 1475-1483 (JEL, ISI Listed, συντελεστής βαρύτητας: 0.437 και 5-ετίας 0.655) (2005, in common with C. Kitsos)

In this paper, the optimal pollution level is identified under the assumptions of linear, quadratic and exponential cost functions. The corresponding optimal level of environmental policy is evaluated, with analytical forms in the linear and quadratic case, while in the exponential case, these values are obtained approximately. It is shown that, in principle, its existence obeys certain restrictions, which are investigated here. The evaluation of the benefit area is discussed and analytical forms for this particular area are calculated.