Graphs

 




Figure1

Example of fictive marginal abatement costs, marginal damage costs and marginal abatement costs curve (MACC) depending on the environmental impact. The current environmental damage is indicated by the diamond at the damage curve


Figure 2
Figure 2 shows marginal abatement costs and marginal damages related to the rate at which some production residual is emitted.
■ Suppose that initially the actual level of effluent is at e₁, a rate substantially above the efficient rate of e*.■To achieve e* the authorities set an emission standard at that level; e* becomes a mandated upper limit for the emissions of this firm.



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