Pollution abatement in the Netherlands : a dynamic applied general equilibrium assessment

This paper introduces a dynamic applied general equilibrium model with bottom-up abatement information for important environmental themes, which can be applied to a wide variety of countries. Empirical abatement cost curves determine the characteristics of abatement and substitution possibilities between pollution and abatement. The analysis of efficient reduction strategies for the Netherlands shows that the costs of current environmental policy targets can be limited via a mixture of technical abatement measures, economic restructuring and a temporary economic slowdown. Smog formation is the most costly environmental theme, due to the absence of sufficient technical abatement options.