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Discontinuous functions and environmental regulation

Shahrukh Rafi Khan


Environmental economics generally employs marginal logic. This is often useful for conceptual demonstrations even if not always literally proffered for policy. This paper argues that more realistic discontinuous schedules are suggested by the development economics literature and these have interesting and counter-intuitive policy implications. The cases examined suggest more stringent environmental regulations and the use of continuous fine functions.


Regulation, standards, environmental economics, ecological economics, pollution fees, policy.

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