The environmental costing model (Milieu-Kosten-Model or MKM in Dutch) is a tool for assessing cost-efficiency of environmental policy. The present paper describes the
modelling methodology and illustrates it by presenting numerical simulations for selected multi-sector and multi-pollutant emission control problems for Flanders.
First, the paper situates the concept of cost-efficiency in the context of Flemish environmental policy and motivates the chosen approach. Secondly, the structure of the numerical simulation model is laid out. The basic model input is an extensive database of potential emission reduction measures for several pollutants and several
sectors. Each measure is characterized by its specific emission reduction potential and average abatement cost. The MKM determines, by means of linear programming
techniques, least-cost combinations of abatement measures as to satisfy, possibly multi-pollutant, emission standards. Emission reduction targets can be imposed for
Flanders as a whole, per sector or even per installation. The measures can be constrained to satisfy “equal treatment” of sectors and several other political
feasibility constraints. Thirdly, the features of the model are illustrated by means of a multi-sector (non-ferrous, chemical and ceramics industry) and multi-pollutant (SO2,
NOx) example. Results show clearly that important cost savings are possible by allowing for more flexibility (emission standards for Flanders as a whole instead of
per sector). Cost savings from taking into account explicitly the multi-pollutant nature of environmental regulation are modest for the current test version of the database.status: publishe