Chapter 18 & 21 L Flashcards
Why does pollution exist? how can the gov fix this?
because air and water are free goods. in the short run, there is no cost of polluting them. in the Lon run , we pay through healthcare and other costs. but now, there isn’t, so it’s not worth the money to not pollute.
gov can restrict certain pollutants, or set a max amount of pollution by companies.
could also put a price on pollution, selling it with tickets or permits. this would cause companies to want to reduce emissions. it rewards less pollutant businesses. it’s ez to reduce pollution by %’s for the next year. allow 50% less permits
why isn’t it possible to have a completely pollution free environment?
it’s impossible as long as industrial processes involve the use of raw materials.
additionally, the more pollution is reduced, the higher the cost is to eliminate. the marginal cost per unit of pollution reduction gets higher and higher.
what are the consequences of zero growth?
- it impedes the creation of wealth on which research depends to advance science and technology. this in turn decreases productivity.
- cant be sure tht the environment will be better off.
- slowing economic growth won’t help the average life increase in impoverished areas.
