Simple Pigovian Taxes vs. Emission Fees to Control Negative Externalities: A Pedagogical Note

Many economics texts introduce their analysis of negative externalities by examining a tax on the output of polluting firms, sometimes called a simple Pigovian tax, often pointing out that taxing pollution directly is superior to taxing output and proceeding to discuss an emission tee as an alternative. They do not show how and why an emission fee is more efficient than an output tax. This note presents a numerical example allowing comparison of the welfare effects of the two approaches, as well as showing why simply reducing the pollution intensity of polluters\u27 output would be inferior to an emission fee

Socially Efficient Control of Carcinogen Emissions from Open Top Vapor Cleaners in lndiana

Robert Main\u27s contribution to the Indiana Academy of the Social Sciences Proceedings, 1995

The Treatment of Economic Issues in High School Government, Sociology, U.S. History and World History Texts

It is often argued that the declining support of free institutions which we have observed in our recent history is, in part, a result of economic illiteracy. That is, ignorance and misinformation about the workings of a voluntary exchange system and about the deleterious effects of governmental interference in that system lead to support of increased government intervention in the economy..

Subsidizing Non-Polluting Goods vs. Taxing Polluting Goods for Pollution Reduction

Pigovian taxes on polluters are politically unpopular, but subsidies for non-polluting sources are politically attractive. This paper presents a linear demand and supply model and numerical example to explore the trade-offs between taxing polluting sources of a good versus subsidizing non-polluting sources of the same good. While the model (along with the associated numerical example) shows the optimality of Pigovian taxes, it also shows how much welfare is reduced if subsidies for nonpolluters are employed instead. Further, it shows the optimal tax, given any level of subsidy and the optimal subsidy, given any level of tax

How Do Environmental and Natural Resource Economics Texts Deal with the Simple Model of the Intertemporal Allocation of a Nonrenewable Resource

Textbooks in Environmental and Natural Resource Economics invariably deal with the problem of allocating a non-renewable resource over time. The simplest version of that problem is the case of a resource that is to be allocated over two periods. The resource has a constant Marginal Extraction Cost (MEC). Most textbooks treat this case before moving on to more complex and realistic cases. This paper suggests the results that should be emphasized and the method that should be used to arrive at those results. It also points out the possible confusions that should be avoided. Finally, it examines how several well-known textbooks treat this issue

The Elimination of the Chronic Alimentary Enteric Carrier State

Abstract Not Provided

Amount and Chemical Composition of the Organic Matter Contributed by Overstory and Understory Vegetation to Forest Soil

Mode of access: Internet