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Unformatted text preview: • Garbage- some cities $1 per bag of garbage o Idea: less garbage o Actual: elast. garbage small – elast. bags large- elast. garbage in woods large o Better policies: curbside recycling, deposit +return • Mexico City: dirty, air, much from autos “Day without a car” o Idea: less driving o Actual: more cars, dirtier cars • Central London: congestion charge o Idea: less traffic jams + pollution o Actual: fewer traffic jams + pollution • Nature of congestion externality o Extra cars slow down all cars • Solution to congestion externality: congestion charge, toll • Congestion is example of “common property resource” problem • Others: fishing in ocean no one owns → overfishing • Open range land→ overgrazing • Solution: property rights, build fences •...
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This note was uploaded on 04/19/2011 for the course EC 201 taught by Professor Ballard during the Fall '08 term at University of Michigan.
- Fall '08