Question

1.From the perspective of economic analysis, society should:             

Try to reduce pollution a level as close to zero as humanly possible

Realize that it is unrealistic to expect that efforts to reduce pollution will be cost effective from society’s standpoint.

Strive to maximize the difference between the costs of pollution and of pollution control

Reduce pollution as long as the reduction in social costs equals or exceeds the additional cost associated with the control program

Pursue reduced pollution levels until the social cost of achieving these levels exceeds the social costs of pollution

Answer 1

If analysed only through view point of society and not taking into consideration any ecnomic scenario then the socially optimum level of pollution should be zero . Every bit of pollution has some cost to the society . But for development economic activities , pollution is ought to be generated . So from economic perspective , the social optimum level of pollution is the point where the marginal benefit of the last unit of pollution generated exactly equals the marginal cost of pollution . At this level the net benefits to society are maximized . Anything beyond it will diminish benefits and increase costs .

Reduce pollution as long as the reduction in social costs equals or exceeds the additional cost associated with the control program