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http://dx.doi.org/10.14249/eia.2019.28.2.141

Economic Efficiency of the BAT Standards in a Multi-pollutant Environment  

Han, Taek-Whan (Department of Economics and Finance, SeoKyeong University)
Lim, Dongsoon (Department of Economics, Dongeui University)
Publication Information
Journal of Environmental Impact Assessment / v.28, no.2, 2019 , pp. 141-151 More about this Journal
Abstract
Korea has passed the Act on the Integrated Control of Pollutant-Discharging Facilities in 2015, and the integrated environmental management under the BAT standard is underway. To summarize the nature of integrated environmental management, it is the regulation by the integration of the management of the multi-pollutant source and the technical standard of BATs. In general, in environmental economics, regulation-based on technical standards are known to be inefficient. This paper attempts to evaluate the efficiency of BAT standards from an economic point of view. A simple multi-pollutant model demonstrates that the inefficiency of the environmental tax with imperfect information in a single pollutant situation is amplified under multi-pollutant conditions. The simultaneous introduction of BAT and IPPC can be partially explained by this logic. It is also highlighted by the strengthening of BAT standards by EU, as a countermeasure to the potential deterioration of air quality caused by the change of effective environmental taxes accompanying the fuel and emission price changes.
Keywords
best available technique; environmental tax; efficiency; social welfare; incomplete information;
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