Adjustment Costs and Optimal Taxes in a Dynamic Model of Pollution

The effects of pollution upon the environment are causing increased concern in the developed countries. This concern centers on the policies to adopt to control the level of pollution. Some countries are also concerned in reducing the level of pollution. The developing and less developed countries can benefit from the experience of the developed countries in pollution control. The next century will probably experience stringent regulations on environmental pollution as the problem becomes enormous. Societies are becoming more and more aware of the environmental issues. This awareness will reflect itself in a stronger demand for strategic policies to deal with environmental issues

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