About this document
Addressing Negative Externalities in Markets by Sammy Pearce is a document available to read on EtoBox.
The document discusses negative externalities related to consumption and production. It provides examples of negative externalities, such as air pollution from large factories and cigarette smoking. The key externality discussed is air pollution from airplane flights. Government policies can help reduce external costs by taxing firms to shift marginal private costs to equal marginal social costs, or by legislating and banning polluting firms to restrict output. While taxes and bans may help, it is difficult
- Author
- Sammy Pearce
- Language
- EN