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What is meant by "optimal" pollution? Explain why there might be different estimates of marginal external...

What is meant by "optimal" pollution? Explain why there might be different estimates of marginal external benefits and costs

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Optimal pollution is when,  the marginal benefit of the last unit of pollution = the marginal cost of pollution. There may be difference in marginal external benefits and costs as they differ from people to people. For example poor families living besides petroleum refining industries may not even be a heavy consumer of petroleum and its product but takes the most pollution coming out of it. Their marginal cost is higher than the marginal external benefits. Where as Rich person living at some big quite place may be a heavy user of petroleum but doesn't face as much pollution . Their marginal external benefit is higher than their marginal cost.

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