Externalities and Public Goods Revisited
Deepens the analysis of externalities using marginal abatement cost and marginal damage cost frameworks. Evaluates the effectiveness of Pigouvian taxes versus tradable permits.
About This Topic
Deepens the analysis of externalities using marginal abatement cost and marginal damage cost frameworks. Evaluates the effectiveness of Pigouvian taxes versus tradable permits.
Key Questions
- How do we determine the socially optimal level of pollution?
- Are tradable permits more effective than carbon taxes in practice?
- How do free-riders complicate the provision of global public goods?
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