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Published online by Cambridge University Press: 07 July 2020
Empirical estimates of some of the external diseconomies from polluting activities have posed difficult measurement problems for economists. Yet it is important to have some notion of the probable magnitude of the costs of pollution if society is to rationally and efficiently allocate resources to pollution abatement. Otherwise, one would not know whether too many or too few resources were being used for such purposes in terms of marginal optimality.
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