The following two examples outline cases where the gross pollution function does not exhibit constant returns to scale.
In regions with higher pollution levy rates, firms tend to have lower pollution intensity.
In many developing countries, pollution control regulations are formulated at the national level, but their enforcement is the responsibility of local environmental protection bureaus.
As industrial production has fallen so have associated negative externalities, leading to reductions in air, water, soil, and noise pollution.
The theory of pollution havens is straightforward; however, empirical evidence for their existence is mixed.
It is also not unique in suffering high levels of air and water pollution and facing severe threats to its biological resources.
Over two-thirds of urban air pollution is generated by transportation, while virtually all the remainder are due to other petroleum-using activities.
We have shown how pollution taxes on both goods can affect factor returns, goods' prices, urban unemployment, and social welfare for the economy.
