Abstract
Environmental regulations typically follow a command-and-control approach mandating the installation of state-of-the-art abatement technology and imposing hard emission thresholds. However, this type of regulations does not encourage process improvement and technological research to reduce emissions. In contrast, market-based environmental regulations stimulate continued improvement of cleaner manufacturing practices by creating economic incentives for sustained emission reduction. This paper aims at furnishing regulators and manufacturers with a tool to assess the impact of future regulatory scenarios using realistic chemical engineering models of pollution abatement operations.
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