RES-ECON 162 Lecture Notes - Lecture 7: Environmental Policy, Statistical Hypothesis Testing, Market Failure
18 Feb 2017
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Everything up to today is fair game for exam 1. 6-8 pm thompson 102 exam 1 will be heavy on concept set theory- optimum is a fixed point. Something is at its least cost, not lower cost. Maximize efficiency- efficiency implies maximization of net benefits. X is quantity, y is always the price. Economists often distinguish between positive economic analysis and normative economic analysis. Positive economics- this is analysis that answe(cid:396)s (cid:863)what is(cid:863) (cid:395)uestions. Normative economics- this is analysis that seek answe(cid:396)s to (cid:862)what should be(cid:863) (cid:395)uestions. A positive result from last lecture: competitive markets will not produce efficient outcomes when pollution is involved. What level of environmental quality should we strive for. How should we try to achieve environmental quality goals. How should the costs and benefits of env policies be distributed. Components of an economic model of pollution control for some environmental policy to reduce concentrations of a poluutant emitted by some industy.
