Pollution control: Target(I) Flashcards

1
Q

What is flow-damage pollution?

A

In the context of environmental harm, flow-damage pollution refers to situations where the extent of damage is directly tied to the pace at which pollutants are being introduced into the environment. The key factor here is the current emission rate of these harmful substances.

If there is no flow, there is no damage.
- Example on flow damage: Noise pollution, when the noise is there we are hurt, but when the noise stop we are not hurt anymore.

Mathematical

M_t+1 = M_t

where M_t = emission flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is stock-damage pollution?

A

Stock-damage pollution, on the other hand, pertains to cases where the level of environmental damage is linked to the accumulated total of pollutants present in the environment at a given time. Here, it’s the aggregate amount of the pollutant that has built up in the ecosystem that is critical for assessing damage.

There would still be damage here, if there is no flow, because this an agregate damage built up at a given time.
- Stock damages = climate change

Mathematical
A_t+1 = aA_t + M_t

where A_t = pollution stock, a > 1 = parameter that says pollution stock is increasing, a < 1 = pollution stock decreasing.

For small values of a, pollution stock will be roughly proportional (and close) to the current pollution flow.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How is the efficient level of pollution defined in theory? In real life?

A

In theory:
There are costs and benefits of pollution emissions: The benefits of pollution emissions comes from reduced pollution damage. Stricter pollution targets will generate benefits but will also generate higher costs of production

With both benefits and costs, economic decisions about
the appropriate level of pollution involve the evaluation of
a trade-off.

The trade off is optimized at the point where the marginal benefits arising from reduced pollution damage fall to a level equal to the marginal benefit from avoided control
costs.

In Theory:
Paris 2015

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Discuss the statement “Only the highest standards of
environmental purity will do.

A

Lots of threads:

Strong sustainability idea. We need to do as much as possible now, fast.

Economical reasoning, we will need the economy to survive this transition.

Technological constraints, it’s not possible right now to make it to zero emissions.

Global cooperation, the issue goes past countryborders. We need a diplomatic solution to that.

Equity and Access: High environmental standards should also consider equity and access to resources. There’s a risk that stringent measures could disproportionately affect lower-income populations or countries, who may lack the resources to implement such standards.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

State the efficient emissions: the case of pure flow-damage pollution

A
  • In this case we change our idea of benefits of pollution. Here we think that the benefits of pollution is saved abatement cost. To understand this, take a firm, who needs to lower there abatement. They invest in some CO_2 saving equipment, that they put on their chimney. The equipment they bought takes up 50 % of the CO_2, but they could have bought equipment, which was more expensive, that saved 99,9%. Because the firm saved abatement cost, then it can be seen as a benefit of pollution in an economic perspective. Problematic understanding, because saved abatement costs might benefit certain economic actors in the short term, the long-term environmental and health costs of continued pollution can far outweigh these savings. This perspective can lead to underinvestment in sustainable practices and technologies, ultimately imposing greater costs on society and the environment.
  • The costs of emissions are called ‘damages’.
  • These damages can be thought of as a negative externality.
  • For the moment, we assume that i) damage is independent of the
    time and the source of the emissions, and that ii) emissions have
    no effect outside the economy being studied. We relax these
    assumptions later.
  • An efficient level of emissions is one that maximises the net benefits
    from pollution, where net benefits are defined as pollution benefits
    minus pollution damages.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Where is the efficient level of emissions from a firms point of view? The case of pure flow-damage pollution

A

An efficient level of emissions is one that maximizes the net benefits
from pollution, where net benefits are defined as pollution benefits
minus pollution damages.

NB = B(M) - D(M)

where, B = benifit, M = emission flow, D = Damage.

The net benefits from pollution is maximized, when marginal damage cost is equal to marginal abatement cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is “mixing of a pollutant”?

A

ChatGPT
The concept of pollutant mixing describes how a pollutant diffuses or spreads out in the environment due to physical processes like wind or water currents. When we say a pollutant is “uniformly mixing” (UM), we mean that these processes distribute the pollutant so evenly throughout a certain area that its concentration is the same no matter where you measure it within that area. Essentially, the pollutant quickly disperses so that its levels are consistent across different locations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Can we use a simple model of flow pollution, to determine the optimal level of emissons, when the pollution stock decays quickly and the location of
the source of pollution does not matter for the damage cost?

A

Yes, BUT we need to distinguish between “uniformly” and “non-uniformly”.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is uniformly mixing (UM) and non-uniformly mixing (UM) pollution.

A

For a pollutant that behaves in this uniformly mixing manner, the specific location where it’s released doesn’t affect how it’s distributed in the environment. all that matters for the damage cost is the total quantity of the pollutant that’s released.

With non-uniformly mixing pollutants the optimal constraint on
emissions from a given source of pollution will typically
depend on the location of that source.

So the difference is, that source of pollution in the first case do not depend on the location of the source, where the second does.

We look into it because in the case of pollutants are not uniformly mixing, then location matters, due to who bears the cost or need help.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Give me some examples on non UM pollutants?

A

Examples include ozone accumulation in the lower
atmosphere, oxides of nitrogen and sulphur in urban
airsheds, particulate pollutants from diesel engines and
trace metal emissions.

Many water and ground pollutants also do not uniformly
mix.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

If you want to say this in academic environmental language, how would you do it?

The sentence means that the connection between the amount of pollutants released into the atmosphere (emissions) and the level of these pollutants found in a specific area of the atmosphere (concentration) varies from one location to another. In simpler terms, how much pollution is put into the air doesn’t directly translate to the same level of pollution being present everywhere. Different factors, such as geographical location, weather patterns, and local environmental policies, can influence this relationship, causing variations in pollution concentration across different areas.

A

There will not be a single relationship between emissions and concentration over all space.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does “source of emission” and “receptoptor of emission” means?

A

The source of emissions is the producer of the pollution, e.g. a firm or private cars.

The receptor of emission is where the damage is felt. So e.g. is the climate and biodiversity in general terms receptors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the assumptions for the Ambient pollution standards: Optimal emission targets across space?

A

Various physical and chemical processes determine the impact on
pollutant concentration in any particular receptor from any particular
source.

For simplicity, we assume that the relationships are linear. In that
case, a set of constant ‘transfer coefficients’ can be defined.

We also assume the pollution stock decays quickly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Outline the algebra og ambient pollution standards.

A

Suppose that there are J spatially distinct pollution ‘reception’ areas
(or receptors), each being indexed by the subscript j (so j = 1, 2,…,J)

There are N distinct pollution sources, each being indexed by the
subscript i (so i = 1, 2,…, N).

The transfer coefficient d_ji describes the impact on pollutant
concentration at receptor j attributable to source i.

The total level, or concentration rate, of pollution at location j, Aj, will be the sum of the contributions to pollution at that location from all N emission sources. When the pollution stock decays quickly, this can be written as

A_j = Sum (N and i=1) d_ji * M_i

where Mi denotes the total emissions from source i.

We calculate the sum of equations as a Matrix timed with vector. See example in the slides, where we have N = 2 sources and j = 4 receptors. So two polluters affecting 4 receptors. When we have knowlede about the, source, receptors and pollution (M), then we can calculate ambient pollution levels at each receptor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the socially efficient level of emissions from each source?

A

It will be the set of emission levels that maximises net benefits.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Outline how we calculate the socially efficient level of emissions from each source?

A

Note that there are N emission sources, and so our solution will consist of N
values of Mi, one for each source. So we have different solutions to the different sources!

Benefits consist of the sum over all N sources of each firm’s pollution
benefits.

B = Sum (N and i=1) B_i * M_i

Damages consist of the sum over all j receptor areas of the damage incurred in that area.

D = Sum (J and j=1) D_i * A_j

The we would calculate the NB

NB = B - D = Sum (N and i=1) B_i * M_i - Sum (J and j=1) D_i * A_j

substitute, reragne and the take the FOC, so we get the marginal.

…. (see slides)

The efficient level of emissions (target or standard) from each source (firm) should then be set to so that the firms marginal benefits of its emissions is equal to the marginal damage (the left-hand side of the equation). og it emissions (the right-hand side of the equation).

17
Q

What is the intuition behind the socially efficient level of emissions from each source?

A

Note that because the ith firm’s emissions are transferred to some or
all of the receptors, the marginal damage attributable to the ith firm
is obtained by summing its contribution to damage over each of the j receptors.

An interesting property of the solution is that not only will the efficient emission level differ from firm to firm, but also
the efficient ambient pollution level will differ among receptors.

The reason why efficient emission levels should vary is that firms
located at different sources have different pollution impacts: other
things being equal, those sources with the highest pollution impact
should emit the least.

18
Q

What lies behind the result that efficient levels of pollution will vary
across receptors?

A

When receptors are located in different positions relative to polluters
and the pollutant is non-uniformly mixing, it is inevitable that they will
be affected differently both before and after pollution control

However, receptors that suffer more from pollution (say, due to
higher population density) will also gain more from pollution control

NB = B - D is being maximised, and so we are searching for the best
trade-off between the benefits reduction and damages reduction.
Other things equal, receptors with higher marginal damage costs will
weigh more heavily in the calculation of total marginal damage cost.

19
Q

Suppose equity concerns are more important than efficiency concerns. How can such additional concerns be accounted for in the framework above?

equity in this case should be understood as fairness. E.g. remember the picture of the people with different heights standing behind a wall, all staring on the same box (equality). This is not equity, because then we need everybody to be at the same height, so we redistribute the boxes so it becomes fair.

A

Progressive Policies and Subsidies:

Implement policies that disproportionately benefit lower-income populations or those more adversely affected by pollution. For example, subsidies could be provided for clean energy technologies in low-income communities, making them more accessible and helping to offset energy costs.

Environmental Justice:

Incorporate environmental justice principles by ensuring that policies address the unequal distribution of environmental benefits and burdens. This includes preventing low-income and minority communities from bearing the brunt of environmental pollution and ensuring they have equal access to environmental benefits.