300 word answer

In Chapter 5, Tietenberg & Lewis provide an overview of the economics of pollution control. They divide pollutants into two broad categories, stock pollutants and fund pollutants. Begin your presentation for this week’s discussion by briefly explaining the difference between these two types of pollutants.

The authors define the efficient amount of fund pollutants as the amount that minimizes the sum of damage and control costs. Using this definition, they derive two general rules, one of which is that the efficient level of pollution is not generally zero. Briefly explain why this is true. Can you think of a fund pollutant for which this might not be the case, i.e., a pollutant for which zero is the efficient level of pollution?

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