Externalities

3 Pages
63 Views
Unlock Document

Department
Agriculture + Resrce Econ
Course
AREC 202
Professor
Christopher Goemans
Semester
Fall

Description
30 September Production Externality Happens during the production process Consumption Externality Happens when an item is consumed Other people smelling your axe They like it – external benefit They don’t – external cost Smoking near someone else Consumer negative You get in shape, other people get to look at you Consumer positive Enjoying the smell of a coffee shop Producer positive Hitting someone drunk driving Consumer negative You had the alcohol Victim is third party Prince William Sound, Alaska Exxon oil spill Producer negative externality Pollution is often good Implies consumption or production of beneficial products Each unit of oil we consume enhances probability of a spill → increases external cost Social cost in
More Less

Related notes for AREC 202

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit