The polluter's investment is consequently
excessive when evaluated from a social stance, although the level of
liability falls short of the level of environmental damages. The saving inminimized private costs is given by C1(x1
DSL)+L(x1
DSL)−[C2(x2
DSL)+L
(x2
DSL)+F]=.2464−F,while the difference inminimized social costs is C1
(x1⁎)+D(x1⁎)−[C2(x2⁎)+D(x2⁎)+F]=.1824−F