Establishment and Empirical Analysis of Cost Function for Pollution Combination Abatement

We used econometric models and data from over(1,000) heavy pollution sources,analyzed industrial enterprises' pollution behaviors in China from a microeconomic perspective,established a pollution abatement cost function,and applied regressions to such functions using data of water and air pollutants.Then,taking 2004 data as an example,we expatiated the discharge intensities of main industries under different valid charge intensities,proposed marginal abatement costs of different pollutants from different industries,and assessed the policy of pollution charges primarily.The main conclusions are as follows:(1) it is feasible to analyze quantifiably pollution abatement cost,marginal cost of pollution abatement,and the relationship of pollutant concentration and valid charge intensity by establishing a cost function for pollution combination abatement;(2) enterprises in different industries have different water and air marginal costs of pollution abatement,so in order to enhance the rationality and validity,standards of pollutant discharge and charge should be constituted according to different industries;(3) the abatement input of an enterprise should be at a rational level in order to accord with the established standard for pollutant discharge.