CHAP06Externalities in Action Environmental and Health Externalities 公共金融与 及公共政策课件.pptVIP

Chapter 6 Externalities in Action: Environmental and Health Externalities ? 2007 Worth Publishers Public Finance and Public Policy, 2/e, Jonathan Gruber Prepared by:FERNANDO QUIJANO, YVONN QUIJANO,KYLE THIEL APARNA SUBRAMANIAN 6 Externalities in Action: Environmental and Health Externalities ? 2007 Worth Publishers Public Finance and Public Policy, 2/e, Jonathan Gruber Public Finance and Public Policy, 2/e Jonathan Gruber Externalities in Action: Environmental and Health Externalities 6.4 The Economics of Other Addictive Behaviors 6.3 The Economics of Smoking 6.2 Global Warming 6.1 Acid Rain Chapter 6 6.5 Conclusion acid rain Rain that is unusually acidic due to contamination by emissions of sulfur dioxide (SO2) and nitrogen oxide (NOx). Acid rain is a classic negative production externality. Acid Rain 6 . 1 The Damage of Acid Rain Raising the acidity of lakes and other bodies of water is just one way in which acid rain affects the environment. Acid rain causes damage in a variety of other ways as well: ? Forest erosion ? Damage to property ? Reduced visibility ? Adverse health outcomes Acid Rain 6 . 1 History of Acid Rain Regulation 1970 Clean Air Act Landmark federal legislation that first regulated acid rain–causing emissions by setting maximum standards for atmospheric concentrations of various substances, including SO2. Acid Rain 6 . 1 History of Acid Rain Regulation SO2 allowance system The feature of the 1990 amendments to the Clean Air Act that granted plants permits to emit SO2 in limited quantities and allowed them to trade those permits. The 1990 Amendments and Emissions Trading Has the Clean Air Act Been a Success? Economists are best at laying out the costs and benefits of alternative interventions and leaving it to others to decide if those interventions can be called successful or not. Clearly, the Clean Air Act, particularly after the 1990 amendments, has a lot to recommend it. Global Warming 6 . 2 greenhouse effect The process by