3 - We began class by finishing our discussion of the...

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We began class by finishing our discussion of the commons. These include the means for rationing scarce resources, which are on the last lecture notes, and strategies for successful commons management. These include the following: o Successful commons usually have elaborate conventions over who can use resources and when they can be used o What one takes out must be proportional to what is put in o Usage must be compatible with the common's health o Everyone must have a say in the rules o In successful commons, more attention is usually paid to monitoring and conflict than on sanctions and punishment. As we discussed, applying these lessons to "new commons" such as the global climate, would be difficult. I. The Marginal Damage Function Our goal, of course, is to develop policies that lead to an optimal level of pollution. o Recall that the optimal level of pollution is not zero. o We need to consider the marginal costs and marginal benefits of pollution. The marginal damage function shows the damage done by an additional unit of pollution. o
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This note was uploaded on 04/05/2012 for the course ECON 332 taught by Professor Hilarysigman during the Fall '11 term at Rutgers.

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3 - We began class by finishing our discussion of the...

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