Ch19_class - In the news Congestion pricing in New York...

Info icon This preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
In the news: Congestion pricing in New York Kaine to provide universal pre-K In Silicon Valley, Job Hopping Contribute A Greener Way to Cut the Grass
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Principles of Microeconomics Econ 2005 Externalities (Ch 19)
Image of page 2
In this chapter: Externalities and market inefficiency Negative and positive externalities Coase theorem, explains how private individuals can sometimes solve externalities Government policies to deal with externalities, emissions taxes, tradable permits, or Pigouvian subsidies, environmental standards
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The Economics of Pollution Pollution is a bad thing. Yet most pollution is a side effect of activities that provide us with good things. So the optimal quantity of pollution isn’t zero. Then, how much pollution should a society have? What are the costs and benefits of pollution?
Image of page 4
Costs and Benefits of Pollution The marginal social cost of pollution The marginal social benefit of pollution The socially optimal quantity of pollution
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Costs and Benefits of Pollution
Image of page 6
Pollution: An External Cost An external cost (negative externality) is an uncompensated cost that an individual or firm imposes on others. Example: Pollution, traffic congestion An external benefit (positive externalities) is a benefit that an individual or firm confers on others without receiving compensation.
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern