Externalities and Advanced Policy Responses
Economics · JC 1 · Firms, Markets, and Market Failure · 2.º Período

Externalities and Advanced Policy Responses

Evaluates sophisticated policy interventions for externalities, such as cap-and-trade systems and behavioral nudges. Students will assess the limitations of traditional Pigouvian taxes.

MOE Syllabus OutcomesMOE Pre-University H3 Economics Syllabus, Theme 2: Firms, Markets and Market Failure - Positive and negative externalities in consumption and productionMOE Pre-University H3 Economics Syllabus, Theme 2: Firms, Markets and Market Failure - Advanced policy responses to externalities

About This Topic

Evaluates sophisticated policy interventions for externalities, such as cap-and-trade systems and behavioral nudges. Students will assess the limitations of traditional Pigouvian taxes.

Key Questions

  1. Why might traditional taxes fail to fully correct externalities?
  2. How do tradable permit schemes work in practice?
  3. What is the Coase Theorem's relevance to modern environmental issues?

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