PUP-4203 Lecture Notes - Lecture 5: Environmental Politics, Demand Curve, Environmental Good
Document Summary
Concepts: value of a staisical life, hedonic pricing, coningent valuaion, social discount rate. Negaive externality, above the supply line and to the lef. Posiive externality, above the demand curve and to the right. Coase"s property rights- shifs the demand curve up. Shortcomings of cost beneit analysis- ethical concerns, they"re noisy. When we value something we don"t see the complexity of it for the other things we enjoy. Value we get when we use something: human health. Mortality-death (value of a life) observe people and how they trade-of risky behavior and income, how much do we have to pay you to risk your life, the riskier the job the more you have to be paid. Wage premium- the addiional amount you have to pay somebody to take on more risk. Wage premium= vsl x risk vsl+ wage premium/ by risk: ecosystems.
