Hunters and Fishermen of the Arctic Forests

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Specialize in urban economics and you’ll use economic models to study cities and their development. State intervention is reIuired 1+ ● ● ● ● .!nstitutional conomics paradi%m Ronald A. 1111. the most efficient solution to pollution dama%e situations is a 6ar%ainin% process 6et7een polluter and sufferer: each could compensate the other. 114.(ariants of )eoclassical paradi%m (!): The propert# ri%ht approach ● Pu6lic decision ma9er.): %iven certain assumptions. similarl# to private individual. is pursuin% self2interest 22= M'K his o7n utilit# The pu6lic sector provides no incentives for politicians or 6ureaucrats to resist pressures from interest %roups Misallocation of environmental resources cauesd 6#: – – ● ● Mar9et failures Jovernment failures ● >oase theorem (>oase. accordin% to 7ho possesses propert# ri%hts – Polluter has the ri%ht: the sufferer can compensate him not to pollute Sufferer has the ri%ht: the polluter can compensate to tolerate the dama%e 14 –. (ariants of )eoclassical paradi%m (!!): The materials 6alance approach ● Pollution is a pervasive and inevita6le phenomenon. reIuirin% %overnment intervention (re%ulation or incentives) 'n optimum (efficient) level of pollution can 6e defined: – ● Min (pollution). rather than an optimizin% principle ● 1-. such that: mar%inal net private 6enefits N mar%inal e

Pages: 155

Publisher: Aldine Transaction; Revised ed. edition (January 11, 2009)

ISBN: 0202362779

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