ECON 2D03 Lecture Notes - Lecture 2: Clean Air Act (United States), Luxury Goods, Externality
Document Summary
Under allocation of resources: the production of less than the socially optimum amount of a good or service. Externalities: problem of inequity (unfairness, problem of inefficiency (improper allocation of resources) Environmental concern started in 1960s: confined mainly to the united states and other economically advanced countries. Why was it localized in these countries: population growth -> more pollutants, pollutants are more dangerous now, affluence produces a desire for the luxury good of environmental quality. Clean air act of 1970: amended and strengthened in 1977 and 1990. Comprehensive environmental response, compensation, and liability act of 1980. 2012: rules to double fuel economy by 2025. 2013: executive order for more climate change protections: regulate power plant co2 emissions, promote renewable energy, promote energy efficiency, develop contingency plans for natural disasters caused by climates change. Pollution: spread from one locality to another, or to the world, under allocation of resources devoted to pollution control. Pollution control: need to be addressed at geographical level.
