Compromise solutions to the acid deposition control problem: a theoretical model and some simulation results

Acid deposition is a muitifaceted environmental phenomenon whose control represents one of the most controversial environmental policy areas. Because of the longrange transport of air pollutants contributing to acid deposition, its control is the responsibility of more than one region. Given the interdependence between the economic and environmental impacts of acid deposition as well as the interregional conflicts over its control, the present article proposes an interregional integrated economic-environmental model for the study of the impacts of acid deposition control policies. This model is solved with the use of a compromise programming procedure which facilitates the explicit treatment of conflicting regional goals. After the theoretical and operational forms and the solution procedure of the proposed model are described, the use of the model is illustrated with a simulation example using the 1963 MRIO accounts and hypothetical environmental data. The compromise programming procedure can form the basis for interactive decision processes when policy makers are exposed to the solutions yielded by the model. The model's usefulness and future research directions are discussed.