Question

Can pollution ever make us better off? How do we

know? Should we aim to eliminate all pollution? If

not, what should our goal be? Explain your answer.

Answer 1

Up to an optimal level, pollution can make us better off. The human induced pollution is related to development activities such as setting up of industry, transportation, infrastructure etc. But after a certain level, pollution harms more to the society than it gives.

It is not advisable to eliminate pollution but to abate it. As pollution is abated, marginal benefit decreases and marginal cost increases. The optimal level of pollution abatement is where marginal benefit is equal to marginal cost.

Thus our goal should be to abate pollution only to the optimal level.