2008_02_26_Notes

2008_02_26_Notes - from ambient pollution at receptor j...

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UP FRONT, 2-26-08 Problem set 3 due next Tuesday. Will send by email. Reading for next time: Perman et al. pp. 202-224, can read boxes later. If you don’t follow, raise your hand. Worked well in a class I took. Outline for Today 1) Non-uniformly mixing pollutants: Efficient emissions from each source when there are multiple sources and receptors (continued) 2) Shapes of MC and MB functions 3) Estimating the costs of abating pollution
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Efficient ambient pollution concentrations with multiple sources and receptors Notation: Sources i = 1, …, I Receptors j = 1, …, J M i emissions from source i A j ambient pollution at receptor j d ji Δ A j / Δ M i , transfer coefficient from  source i to receptor j B i (M i source i’s savings from emitting MB(M i ) B i ’(M i ), source i’s marginal savings  from emitting. D j (A j ) Damage at receptor j from ambient  pollution at receptor j
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MD j (A j ) D j ’(p j ), marginal damage at receptor j 
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Unformatted text preview: from ambient pollution at receptor j * Indicates value at interior solution(s) First-order condition for case of one source, one receptor First-order conditions for case of two sources, one receptor First-order conditions for case of I sources, J receptors) Firm’s behavior when facing a fee (or permit cost) of p i per unit of emissions We showed before that when facing when facing a fee (or permit cost) of p i per unit of emissions, the firm will choose M i such that B i ’(M i ) = p i (assuming B i ’(M i ) is a strictly decreasing function of M i ) (picture) Numerical example with two sources, two receptors Suppose d 11 = 2 d 12 = 4 d 21 = 3 d 22 = 2 MD j (A j ) = A j for j = 1 and 2 MB(M i ) = a – bM i = 344 – 7M i for i = 1 and 2...
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