ABSTRACT
In Section 8.3 of the previous chapter, we discussed the various techniques that economists employ to assess the benefits of a project implemented to avoid environmental damage. A project in this case is defined as a concrete action taken to alter the state of the natural environment – generally, against its deterioration. A case in point is an intentional plan taken by a given society to control SO2 emissions from an electric power plant. As shown in Figure 9.1 (which is a replica of Figure 8.2), undertaking this project allows society to move from the status quo, point A, to a new position, point B. Furthermore, in this particular case, the total benefit resulting from the implementation of the project is identified by the shaded area under the society’s demand curve for environmental quality.
