Author(s)

P. Linares

Abstract

An efficient pollution management requires the harmonisation of often conflicting economic and environmental aspects. A compromise has to be found, in which social welfare is maximised. The determination of this social optimum has been attempted with different tools, of which the most correct according to neo-classical economics may be the one based on the economic valuation of the externalities of pollution. However, this approach is still controversial, and few decision makers trust the results obtained enough to apply them. But a very powerful alternative exists, which avoids the problem of monetising physical impacts. Multiple-criteria decision making

Keywords