The Environmental Impact of New Products

Negative externalities of goods may arise both from their production, their use by the consumers, and from the disposal of waste. The concept of life cycle assessment (LCA) of a good is explained, tracking the environmental impacts of a good along its entire life cycle. Some elementary linear programming models of industrial production are presented, illustrating the possible presence of environmental goals laid down on resource use, on consumer demand, or on environmental impacts. The corresponding dual programs are formulated, featuring excise taxes to be imposed on harmful releases into the environment (rather than direct constraints)