Externalities课件.pptVIP

Figure 11b: A Tax on Producers to Correct a Negative Externality 100 125 D $1.00 $0.50 B (b) Millions of Gallons per Period Dollars $1.30 $0.80 SBefore Tax SAfter Tax 6. shifts the supply curve upward . . . 7. and moves the equilibrium to the efficient quantity. 5. A tax per unit on producers, equal to the negative externality per unit, A 精品文档 Taxing a Negative Externality Government could use a tax on producers to move gasoline market to point B Payment of the externality tax is shared between consumers and producers, as is the payment of any tax, and will depend on elasticities of supply a