Economic Incentives - Economic Incentives Tragedy of the...

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Unformatted text preview: Economic Incentives Tragedy of the Commons: self-maximizing Makes environmental concerns part of the decision-making process BUT- not all economic incentives actually help the environment Persuasion rather than command Why Involve Money? Can be more cost-effective than command and control policies Less enforcement costs More cost effective for companies as well as they dont overpay more than the cost of pollution Clearer policies goals to the public Example: pollution reduction is the goal, not bogged down in technical talk of how hiding the ultimate goal Economic Incentive- Pros Simplifies governments job- responsible for the end goal, not the way firms achieve it Gives firms more freedom, encourages innovation Requires less special knowledge on the part of government Carrot-Stick approach rather than just commanding Pros- Continued Less socially acceptable/trusted by general public Can reduce but not ban Cons Do economic incentives really require less...
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This note was uploaded on 02/06/2012 for the course POL 223 taught by Professor Aldrich during the Fall '10 term at Purdue University-West Lafayette.

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Economic Incentives - Economic Incentives Tragedy of the...

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