The economics of stock pollutants: the example of cadmium

Abstract

Cadmium is selected as an example of a “stock” pollutant—i.e., one for which no counterpart degrading capacity exists in the environment. The current state of knowledge about cadmium concentration in the environment and the impact of this concentration on biota is assessed. The authors then assess the implications of non‐degradability for orthodox cost‐benefit approaches for assessing socially optimal levels of pollution. They conclude that stock pollutants have features which preclude optimal levels from being established by conventional economic analysis.