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  • 1 Department of Environmental Economics and Technology, Budapest University of Economic Sciences and Public Administration H-1093 Budapest, Fővám tér 8, Hungary
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With the determination of principal parameters of producing and pollution abatement technologies, this paper quantifies abatement and external costs at the social optimum and analyses the dynamic relationship between technological development and the above-mentioned costs. With the partial analysis of parameters, the paper presents the impacts on the level of pollution and external costs of extensive and intensive environmental protection, market demand change and product fees, and not environmental-protection-oriented technological development. Parametrical cost calculation makes the drawing up of two useful rules of thumb possible in connection with the rate of government interventions. Also, the paradox of technological development aiming at intensive environmental protection will become apparent.

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