Pollution control costs rise steeply as reductions increase

Evidence

A third generalization is that tradeable emissions policies provide a potentially useful supplement to command-and-control regulation efforts. The marginal cost of pollution control generally rises as controls become more demanding. It costs far more to reduce pollution from 10 units to 5 units than from 100 to 95 units, even though each is a 5-unit reduction. Therefore, as the degree of pollution reduction being sought increases, so too does the need to have that reduction accomplished by those who can do so most efficiently. A market-based policy, such as a tradeable emissions program, provides for just such administrative flexibility by allowing facilities with higher pollution control costs to, in effect, buy reductions from those facilities with lower pollution control costs. — Richard J. Lazarus, The Making of Environmental Law, 879

Categorization

• XREF: connects to: Tough new-source pollution rules can backfire by prolonging dirty existing plants. — Richard J. Lazarus, The Making of Environmental Law, 764; Tradeable emissions rights could cut pollution at lower cost than command-and-control rules — Richard J. Lazarus, The Making of Environmental Law, 799

Broader Connections

• Tradeable emissions rights could cut pollution at lower cost than command-and-control rules #expands (0.80) — Richard J. Lazarus, The Making of Environmental Law, 799