Environmental Economics and Management (Routledge Revivals)

7

Pollution and Uncertainty

 

 

 

7.1 INTRODUCTION

In our pollution analyses we have so far considered discharges as deterministic variables. Furthermore, we have assumed that the effects of discharges on environmental indicators can be predicted with certainty. In many actual situations, on the other hand, it would be realistic to assume that both discharges and effects on the environment of given discharges are stochastic variables. Discharges ‘measured at the factory gate’ may be stochastic on account of random variations in the course of production and/or purifying processes due to mechanical defects, accidents, and the like. Discharges reaching recipients may vary at random as a result of weather conditions. As far as the relationship ...