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G-95-12

Pollution Management Through Levies and Subsidies

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This paper is concerned with the problem of the management of pollution by a local government which aims at the achievement of certain environmental standards within a relatively short time horizon. It is assumed that this government disposes of financial means which might be spent on subsidies to encourage the polluting agents to build their abatement facilities, and also possesses a legislative power to impose environmental levies on emission for the non compliance to the standards.

, 16 pages

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