A Classic Case of International Pollution With an Ideal Policy Solution
(Figure 13.5)

Point A is inefficient from a world perspective. Any pollution beyond 80 million tons is inefficient-it does more damage than it benefits the paper company. In the figure any waste dumping above 80 million tons has marginal costs that are above the marginal benefits. For instance, while the last few tons dumped bring the German firm almost no extra benefits, these last few tons cost the Austrians about 700 euros per ton.
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