A major goal of the environmental research undertaken at the University of Maryland has been to develop a comprehensive yet disaggregated systems approach to the economic analysis of environmental problems. An overall modelling system of this type could be conceptualized as follows: economic activity (production, distribution, and consumption) implies generationof residual materials. Some portion of these materials, which may be treated or left untreated, is dischargedto the environment. The discharged material alters the ambient quality of the general environment, and this alteration implies various real costs to individuals and economic units within the sys tem. By varying the material discharge, one may, generally at a cost, re duce its impact upon ambient quality and upon humans.
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