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

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In the news: Congestion pricing in New York Kaine to provide universal pre-K In Silicon Valley, Job Hopping Contribut A Greener Way to Cut the Grass
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Principles of Microeconomics Econ 2005 Externalities (Ch 19)
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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
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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?
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Costs and Benefits of Pollution The marginal social cost of pollution The marginal social benefit of pollution The socially optimal quantity of pollution
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Costs and Benefits of Pollution
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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. Education, class participation
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Ch19_class - In the news: Congestion pricing in New York...

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