Lowering the Cost of Pollution Control Versus Controlling Pollution: A Comment

Dwight Lee (1999) shows that thecollectivity may be better, not worse off,when a technically ``inefficient'' pollutionabatement technology is adopted. Thepurpose of this note is twofold. First, toshow that once rent-seeking is incorporatedinto the analysis, Lee's qualified supportfor a technically inefficient pollutionabatement technology is at bestproblematic, and at worst flawed. Second,to demonstrate that it is possible to makea less problematic normative case in favourof the adoption of the technicallyinefficient abatement policy.