Minimum Tolerance Limits and Institution: An Essay from the Viewpoint of the History of Environmental Economics

The studies about K.W. Kapp’s theory of social costs has been led by S. Teranishi especially in the issue of “accountability and cost allocation”. While his achievements about social costs theory should be praised adequately, we have to indicate that his studies have not been completed yet. Because, He has not referred to Kapp’s“ Minimum Tolerance Limits” in any his studies, despite the importance of role of that words on the social costs theory. In this short essay, to support the study about “Kapp’s Minimum Tolerance Limits and Institution”, we focus on A.V. Kneese’s and J.H. Dales’s argument, which had different approach to the theme “Minimum Tolerance Limits and Institution” from Kapp’s