Decision Problems in the Control of Acid Precipitation: Nonconvexities and Irreversibilities

Abstract

Dose-response functions for the effects of acid precipitation upon ecological systems exhibit nonconvexities and irreversibilities with some positive frequency. Both features imply that compromise control measures, where some intermediate level of harm to a variety of ecosystems is now permitted in order to obtain the benefits of a moderate current increase in fossil fuel combustion could, in economic terms, be the least desirable policy to choose. In addition, benefit-cost analyses, unless corrections are made for these two features, will place too low a value on acidification-induced ecosystem effects. We conclude that natural science and economic research into these effects should concentrate on systems on the verge of acidifcation.