Introduction
Our environment of late has become a scarce resource. Economics being a discipline concerned about effective utilisation and distribution of scarce resources is therefore vital when addressing environmental problems. When formulating environmental policy, economics comes into play with the aim of balancing the costs and benefits of the environmental measures. In this essay, I will discuss air pollution as an environmental problem and the economics involved in addressing it.
Air pollution and Trends in the last 20 years
According to EPA there are six major pollutants that determine air quality. They include: lead, carbon monoxide (CO), nitrogen dioxide (NOx), sulphur dioxide (SOx), particulate matter, and ozone.
Figure 1: Percentage of Primary Air Pollutants
Since measures of controlling ...
