PLG 710 Lecture Notes - Lecture 4: Metrolinx, Toronto Real Estate Board, Social Cost
1 Dec 2018
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Document Summary
Exist on the production side and the consumption side: ex: using cars and causing pollution. Divergence between private and social costs or private and social benefits. Can be negative or positive in their impacts. Positive: education, all of society benefits with this better informed people, better jobs, contribute to the economy with technological innovations, creating more scholarships to promote a particular field (ex: engineers) Spillovers: land market, one property spilling over onto the next, zoning bylaws trying to dress issues of externalities. Supply: price of factors to produce (land, labour, capital, social cost of pollution; the health costs of it. Policy tools: tax, expenditures by government or subsidies (grants, regulation (ex: quota limits, behaviour modification (moral suasion; induce people to change, ndp: recycle movement (reduce, reuse recycle) taught in elementary. Policy tools have been used for pollution control (regulation) Allowing emittance of pollution but tax them: use money to clean up or compensate those impacted.
