International Journal of Innovative Research and Development

Abstract

Theoretically, an economic instrument to control pollution is used to change the producer’s strategy. The socially optimal level of control is where marginal benefits (MSB) equals the marginal social cost(MSC)  of control. But practically it is very difficult to estimate MSB and MSC of pollution control (as pointed out by Coase 1964). In this paper attempt has been made to estimate MSB and MSC by estimating shadow prices from the Cost and Production Functions of Indian Paper Industry. Estimated results make a strong case for economic incentives for environmental protection. 

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Abstract

Although environmental economics is a new area of research emerging very fast, there is vast literature available in this field. In this paper we are trying to provide a comprehensive view of the development of environmental economics, ranging from the greats of Malthus to modern economists.  Of course, we are confining to important research works of this discipline in general and the application of the concepts of environmental economics for abating water pollution in particular.

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