Pollution
Source of SO 2 ‘Benefits’of pollution Effects Damages Costs of pollution What is the optimal amount of pollution that balances costs and benefits?
Are tho enjoying the benefits incurring their
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Overu Self-regenerating stock renewable resource
Ecological Problem: Landings exceed regenerative capacity Economic Problem: Open access and lack of property rights What is the optimal stock and landings?
How can the optimal solution be implemented?
Conversion
•Global Forest Watch map: Conversion of forests to other us between 6000 BC to prent •Problem:
–Choice of preferred us (conversion is not bad in itlf)•Resources just part of a ‘portfolio of asts’
–Imperfect coincidence between rents of decision maker
and social benefits
Environmental Regulation Across the Globe
Differences in regulatory measures across
countries/regions reflect varying institutional ttings
levels of economic development verity of externalities
