Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Backward incidence of pollution control: some comparative statics in general equilibrium

Journal Article · · J. Environ. Econ. Manage.; (United States)
The backward incidence of stronger pollution controls onto the factors of production is examined in a two sector (one polluting, one not), general equilibrium model. The real returns to labor and capital are found to move in opposite directions that depend on the factor intensity of the nonpolluting sector. The magnitudes of these effects are shown dependent upon the degree of factor intensity in that sector, the ease with which pollution can be removed from the effluent, the ease with which capital and labor can be substituted in either sector, and the price elasticities of demand for the sector's products. 20 references, 2 figures.
Research Organization:
Wesleyan Univ., Middletown, CT
OSTI ID:
5898466
Journal Information:
J. Environ. Econ. Manage.; (United States), Journal Name: J. Environ. Econ. Manage.; (United States) Vol. 6:3; ISSN JEEMD
Country of Publication:
United States
Language:
English