Flashcards in PHASE 2 - OPENSTAX CH. 12- Environmental Protection and Negative Externalities Deck (7)
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1
spillover
aka externality, occur in market transaction affecting other parties beyon those involved, negataive and positive
2
social costs
private costs and external costs
3
command and control regulation
specify allowable qtys of pollutiona dn may also detail technologies used- firms required to take social cost into acct
4
issues with command ocntrol
no incentive , inflexibile, written by legislators
5
pollution charge
tax imposed on qty of pollution firm emits gives profit maximizing firm incentive to figure out ways to reduce emissions, incentive to figure out least expensive technologys to reduce pollution
6
marketalbe permits - cap and trade
number of permits allowign only this qty of pollution divided among firms emitting polutiatn, can be sold or given to firms for free
7
