1. Figure 6.4 Total and marginal damage and benefit functions, and the efficient level of flow pollution emissions.
D(M)
B(M)
D(M)
B(M)
Maximised net
benefits M * M* M

2. £ C3 C1 C2 * MA M* Marginal damage Marginal abatement cost M
Figure 6.5 The economically efficient level of pollution minimises the sum of abatement and damage costs.
Marginal damage * C3 C1
Marginal
abatement cost C2 M
Quantity of pollution
emission per period MA M*

3. Figure 6.6 Setting targets according to an absolute health criterion.
Marginal health damage t* MC MH
Emissions, M

4. Figure 6.7 A ‘modified efficiency’ based health standard.
Marginal health damage
tH* MC
MH*
Emissions, M

5. Figure 6.8 A spatially differentiated air shed.

6. Figure Efficient steady-state emission level for an imperfectly persistent stock pollutant. Two cases: {r = 0 and  > 0} and {r > 0 and  > 0}.
** * M*
M** M

7. Figure 6.10 Threshold effects and irreversibilities.
Figure 6.10a A threshold effect in the decay rate/pollution stock relationship.  A

8. Figure 6.10(b) An irreversibility combined with a threshold effect. A

9. f(x) a b • • x
Figure 6.11 A strictly convex function

10. D D MS M
MD = dD/dM MD MS M
Figure 6.12 A non-convex damage function arising from pollution reaching a saturation point.

11. £ a b C M1 M2 M3 M4 Marginal benefit Marginal damage MM
Quantity of pollution
emission per period M2 M1 b C a
Figure 6.14 A non-convex damage function arising from pollutants harmful at low concentrations but beneficial at higher concentrations. M3 M4