Current Proceedings on Technology

Yazarlar: Mihai Daniel Roman

Konular:-

Anahtar Kelimeler:Externalities,Internalization,Cybernetic model,Taxes,Penalties

Özet: The world economic growth in the last century leads to an increasing production, a large diversity of services and products, and also increasing welfare, especially in developed countries. This leads to an irrational consumption of natural and human resources and damages for the environment. We develop in our paper a cybernetic model that internalizes the externalities at local (static) and regional (dynamic) level. We take account into account in our model the negative effects of pollution and based on the principle “the polluter pays” we impose for each unit of pollutant emitted over a legal level a specific tax and a high level penalty for ecological disasters that diminish the producer profit level. To encourage the reduction of pollutants we consider also in our model a reward payment for companies that reduce the pollution level in dynamic fashion.

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