OQT framework to evaluate externalities Flashcards
1
Q
What does the OQT framework stand for ?
A
Opposite externalities, quantify, time
2
Q
How do you follow O ?
A
Talk about the opposite externalities. For instance, if you talk about negative externalities you should identify the positive externalities
3
Q
How do you follow Q ?
A
Q means calculating or measuring. This is where you calculate the extent to which you can calculate the costs of the externality. For example, knowing how many people are affected by noise pollution.
4
Q
How do you follow T ?
A
Talk about if the external costs are temporary or permanent. Short run or Lon run.
5
Q
How to answer Qs on external costs or benefits ?
A
Make points from the extract, chains of reasoning and link back to the question
