Abstract
The most interesting economic instruments for the control of environmental pollution belong to the categories of taxes (or charges) and of tradeable pollution permits. After the basic theoretical propositions of the seventies and their early applications, the search now is for practical methodologies and for a correct and effective use of such instruments. With this aim in view, the paper begins by introducing the concepts of environmental externality and of optimal level of pollution, then illustrates the two main options of control (taxation and market of tradeable permits) and briefly discusses their application in reducing pollution in wide rural areas.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Atkinson, S.E. and Lewis, D.H. (1974), ‘A Cost-Effectiveness Analysis of Alternative Air Quality Control Strategies’, Journal of Environmental Economics and Management 3, 237–250.
Bator, F.M. (1958), ‘The Anatomy of Market Failure’, The Quarterly Journal of Economics 72, 351–379.
Baumol, W.J. and Oates, W.E. (1975), The Theory of Environmental Policy, Prentice-Hall, Englewood Cliffs, N.J., (2nd edn, Cambridge UP, Cambridge, 1988).
Buchanan, J.M. (1969), ‘External Diseconomies, Corrective Taxes and Market Structure’, American Economic Review 59, 174–177.
Buchanan, J.M. and Stubblebine, W.C. (1962). ‘Externality’, Economica 29, 371–384.
Coase, R.H. (1937), ‘The Nature of the Firm’, Economica 4, 386–405.
Coase, R.H. (1960). ‘The Problem of Social Cost’, Journal of Law and Economics 3, 1–44.
Dales, J.H. (1968). Pollution, Property and Prices, University of Toronto Press, Toronto.
Dubgaard, A. (1991), ‘Pesticide Regulation in Denmark’, in Farming and the Countryside. An Economic Analysis of External Costs and Benefits, ed. Hanley, N.D., CAB Int'l, Wallingford, 48–58.
Hanley, N.D. (1991). ‘The Economics of Nitrate Pollution Control in the UK’, in Farming and the Countryside. An Economic Analysis of External Costs and Benefits, ed. Hanley, N.D., CAB Int'l, Wallingford, 91–116.
Kennedy, P.W. (1994). ‘Equilibrium Pollution Taxes in Open Economies with Imperfect Competion’, Journal of Environmental Economics and Management 27, 49–63.
Kula, E. (1994), Economics of Natural Resources, the Environment and Policies, 2nd edn., Chapman & Hall, London.
OECD-Organisation for Economic Cooperation and Development (1989), Economic Instruments for Environmental Protection, OECD Publications, Paris.
OECD (1991), Environmental Policy: How to Apply Economic Instruments, OECD Publications, Paris.
OECD (1993), Taxation and the Environment, OECD Publications, Paris.
Mackay, D. (1991). Multimedia Environmental Models: the Fugacity Approach, Lewis Publishers, Chelsea.
Meade, J.E. (1952). ‘External Economies and Diseconomies in a Competitive Situation’, Economic Journal 62, 54–67.
Mishan, E.J. (1971), ‘The Post-War Literature on Externalities: An Interpretative Essays’, Journal of Economic Literature 9, 1–28.
Moffitt, L.J. (1986). ‘Risk-efficient thresholds for pest control decisions’, Journal of Agriculture Economics 1, 69–75.
Pearce, D.W. and Turner, R.K. (1990). Economics of Natural Resources and the Environment, Harvester Wheatsheaf, Hemel Hempstead.
Pigou, A.C. (1920). The Economics of Welfare, Macmillan, London.
Siehert, H. (1987). Economics of the Environment, 2nd edn, Springer-Verlag, Berlin.
Solow, R.M. (1971). ‘The economist's approach to pollution and its control’, Science 173, 498–503.
Tietenberg, T.H. (1978). ‘Spatially Differentiated Air Pollutant Emission Charges: An Economic and Legal Analysis’, Land Economics 3, 265–277.
Tietenberg, T.H. (1980). ‘Transferable Discharge Permits and the Control of Stationary Source Air Pollution: A Survey and Synthesis’, Land Economics 4, 391–416.
Tietenberg, T.H. (1985), Emissions Trading: An Exercise in Reforming Pollution Policy, Resources for the Future, Washington, D.C.
Tirole, J. (1990), The Theory of Industrial Organization, 4th edn., MIT Press, Cambridge, Mass.
Turvey, R. (1963), ‘On Divergences between Social Cost and Private Cost’, Economica 30, 309–313.
Zamagni, S. (1994), ‘Global Environmental Change, Rationality and Equity’, in The Environment after Rio: International Law and Economics, ed. Campiglio, L. et al., Graham & Trotman, London, 235–247.
Author information
Authors and Affiliations
Additional information
Sections 1, 2, 3, e 4.
Section 5.
Rights and permissions
About this article
Cite this article
Pareglio, S., Sali, G. Controlling pollution in rural areas by economic instruments. Environ Monit Assess 41, 137–157 (1996). https://doi.org/10.1007/BF00394340
Issue Date:
DOI: https://doi.org/10.1007/BF00394340