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Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Vehicle Emission ♦ Cost-effective Policy ♦ Fullerton Li Gan ♦ Many Study ♦ Marginal Cost Curve ♦ Tax Rate ♦ Abatement Method ♦ Emission Tax ♦ Pro-cess Change ♦ Different Rate ♦ Additional Outlay ♦ Different Point ♦ Cost Function ♦ Marginal Cost ♦ Fuel Switching
Abstract abatement methods, many studies estimate pro-duction or cost functions and plot the marginal cost curve for using each method to achieve more abatement. Normally the cost is additional outlay by the firm (e.g., added equipment, pro-cess changes, or fuel switching). Each method may have diminishing returns, however, so the marginal cost of abatement (MCA) may start at different points and rise at different rates.1 Then efficiency requires the planner to pursue each method to the point where all have the same MCA. Or, as pointed out by Arthur C. Pigou (1920), an emissions tax gives incentive for firms to pursue each method until its MCA equals the tax rate, which achieves the same
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study