Marginal and Average Costs of Reducing Nitrogen Oxides and Sulfur Oxide Emissions in Europe. A Contribution to Internalizing the Social Costs of Transport

Klaassen, G. (1992). Marginal and Average Costs of Reducing Nitrogen Oxides and Sulfur Oxide Emissions in Europe. A Contribution to Internalizing the Social Costs of Transport. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-92-050

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Abstract

Market prices not fully reflecting the social costs of production, transport and consumption lead to non-optimal allocation of resources. Internalization of the external costs of transport may create a more optimal allocation. For this, however, estimates of environmental damage costs are necessary. Based on the "cost of avoiding environmental damage" method, this paper estimates the marginal and average costs of reducing SO2 and NOx emissions in the EC/EFTA region.

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