PHASE 2 - OPENSTAX CH. 12- Environmental Protection and Negative Externalities Flashcards Preview

APEC1101H-SEM1 > PHASE 2 - OPENSTAX CH. 12- Environmental Protection and Negative Externalities > Flashcards

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

better defined property rights

legal rights of ownership whih others arnet allow to infirnge iwthout paying compensation