This paper answers three questions related to the discrete nature of pollution abatement: (i) does a source's incremental control cost (as defined by the U.S. Environmental Protection Agency) necessarily exceed its average control cost, (ii) is incremental control cost a better approximation of a source's willingness to pay for abatement credits than average control cost, and (iii) exactly how ...

Conventional wisdom among environmental economists is that the relative slopes of the marginal social benefit and marginal social cost functions determine whether a price-based or quantity-based environmental regulation leads to higher expected social welfare. We revisit the choice between price-based vs. quantity-based environmental regulation under Knightian uncertainty; that is, when uncerta...

Following the Paris agreement in 2015, European Union (EU) set a carbon neutrality objective by 2050, and so did France. The French agricultural sector can contribute as sink through storage biomass soil, addition to reducing GHG emissions. of this study is quantitatively assess additional potential cost eight carbon-storing practices. impacts these practices on soil organic crop production are...

The purpose of this article was to study the economics of Sweden's scheme of 'multiple' arable nitrogen abatement instruments. A large-scale, spatially distributed mathematical programming model that linked changes in agricultural production practices to coastal nitrogen load was developed. Actual abatement policy induced 21% abatement. A rst-best solution to 21% abatement required increased co...

We outline a benchmark carbon dioxide (CO2) intensity system with tradable permits for the aviation industry that will incent in-sector emission abatement opportunities that cost less than the social cost of carbon (SCC). The system sets benchmark emission intensities (CO2 emissions per revenue ton kilometer) by route group and facilitates flexibility in meeting the benchmarks by allowing airli...

Alternative mechanisms for EU ETS (European Union Emissions Trading Scheme) quotas allocations within the Romanian economy are evaluated using a general equilibrium model within a dynamic intertemporal framework. Several distribution rules are simulated based on: the historical emissions, the least-cost approach and the auctioning scheme with and without a preliminary selection of eligible sect...

As drivers of climate action, cities are taking measures to reduce greenhouse gas (GHG) emissions, which if left unabated pose a challenge to meeting long-term climate targets. The economics of climate action needs to be at the forefront of climate dialogue to prioritize investments among competing mitigation measures. A marginal abatement cost (MAC) curve is an effective visualization of clima...