are176 - Making decisions about environmental programs...

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Making decisions about environmental programs Ariel Singerman October 19, 2010
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Benefit-Cost Analysis (BCA) How much environmental protection should be provided? Should a cap and trade on CO 2 emissions be implemented in the US? If implemented, would society be better off? BCA: rimary tool for deciding appropriateness of government intervention Primary tool for deciding appropriateness of government intervention Helps make public decision Considers net gains from action aggregated over all individuals and firms (social welfare = social surplus = CS + PS) Allows analysts to rank economic performance of environmental projects Compares alternative actions and determines which one provides most net benefits to society
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Benefit-Cost Analysis (BCA) Measuring the effect of government program : Consider the following problem: Riley’s construction emits particulates into the air Morgan, a local resident, is asthmatic Government must step in and decide how to solve the problem
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are176 - Making decisions about environmental programs...

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