MAKING DECISIONS ABOUT ENVIRONMENTAL PROGRAMS C H A P T E R 6 MAKING DECISIONS ABOUT ENVIRONMENTAL PROGRAMS ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

FIGURE 6.1 Total surplus from control of particulate emissions (particulate abatement). q*, surplus maximizing amount of particulate abatement; ABCDE, resulting surplus; ABDE, surplus from quantity restriction to q1. ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

FIGURE 6.2 Effect of a tax on particulate abatement. q*, efficient amount of abatement; q1, amount of abatement with $1 unit tax. ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

FIGURE 6.3 Benefit–Cost analysis of pollution (TSP) reduction in Baltimore. Supply and demand for (a) pollution (Adapted from Oates et al., 1989) and (b) pollution control (electrostatic precipitators). ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

FIGURE 6.4 Market determination of discount factor. ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.

FIGURE 6.5 The effect of a regulation on the cement industry. ENVIRONMENTAL ECONOMICS – 2e Charles D. Kolstad Copyright © 2011 by Oxford University Press, Inc.