Environmental Economics: Lecture 3

1
Environmental Economics Lecture 3

• Theory of Externalities

2
Outline

• Groups and
• Review of prior lecture
• Public goods
• Definitions
• Common access resources
• Externalities
• Definition
• Distinction with pecuniary externalities
• Example (river)
• Diagram
• Some claims about market results in the presence
  of externalities.

3
Votes for additional topics

• 5 Environmental regulations competitiveness?
• 4 Systems for monitoring and enforcement?
• 1 Hazardous waste and toxic substances
• 4 Allow buying and selling rights to pollute.
• 6 Global warming
• 4 Energy policy
• 1 Land use and urban sprawl
• 6 Renewable resources (Fisheries, Forests)

4
Groups

• Group I
• Beril
• Willelm
• Per
• Group II
• Travis
• Michael
• Ross
• Marc

• Group III
• Tina
• Cristiano
• Tiago
• Liszina

5
Group II Assignment

• Is it ethical to buy and sell the rights to
  pollute. Present arguments both for and
  against.
• Present at least one (non-American) example where
  such rights should be bought and sold.
• Present at least one (non-American) example where
  such rights should not be bought and sold.