Principles of Microeconomics / Unit 11 MIC 1012 short lesson, about 20 seconds
The Efficient Level of Pollution
Captions available
The idea
Each unit of pollution has a benefit, abatement cost saved, and a cost, damage done. The efficient level equates the marginal benefit of emitting with its marginal cost; zero is efficient only if the first unit's damage exceeds its benefit.
In practice
Banning carbon monoxide would ban driving.
Where people slip
Marginal abatement cost rises with abatement, marginal damage with emissions; the efficient point balances them.
Your place on the trail
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