Pollution abatement in the Netherlands: A dynamic applied general equilibrium assessment

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jpolmod.2005.10.005 Byline: Rob Dellink, Ekko van Ierland Keywords: Applied general equilibrium; Pollution abatement; Dynamics; Environmental policy; Netherlands Abstract: This paper introduces a dynamic applied general equilibrium model with bottom-up abatement information for important environmental themes, which can be applied to a wide variety of countries. Empirical abatement cost curves determine the characteristics of abatement and substitution possibilities between pollution and abatement. The analysis of efficient reduction strategies for the Netherlands shows that the costs of current environmental policy targets can be limited via a mixture of technical abatement measures, economic restructuring and a temporary economic slowdown. Smog formation is the most costly environmental theme, due to the absence of sufficient technical abatement options. Author Affiliation: Environmental Economics and Natural Resources Group, Wageningen University, The Netherlands Article History: Received 1 September 2004; Revised 1 September 2005; Accepted 1 October 2005