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Abstract

This paper examines some of the economic issues underlying the control of pollution and the management of pollution-sensitive resources. The economics of a stock pollutant are briefly reviewed for a simple model with a quadratic damage function and linear dynamics (Section II). A two-state model, where pollution adversely affects the growth of a renewable resource is presented in Section III. Section IV presents differential and difference equation models for two types of pollutants in a stylized model of krill, whales and seals in the Southern Ocean. The paper closes with a section on the need for integrating physical models of pollution with ecosystem models and likely role of physical scientists, biologists and economists in both modeling and formulating policy for an equitable evolutionary strategy.

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