Environmental Economics 6th Edition by Martha k Field,Barry Field

Exercise 2

Suppose there is a river on which are located several paper mills, each of which discharges pollutants into the water. Suppose somebody invents a new technology for treating this waste stream that, if adopted by the pulp mills, could substantially diminish emissions. What are the impacts of this invention on ( a ) the actual level of emissions and ( b ) the efficient level of emissions?