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6. Divergence of Social And Private Discount Rates One difference between private and social discount rates may stem from a difference in social and private risk premiums. 7. Government Failure Government failure (政府失灵)shares with market failure (市场失灵)the characteristic that improper incentives are the root of the problem. Special interest groups use the political process to engage in what has become known as rent seeking(寻租) . 7. Government Failure Rent seeking(寻租) is the use of resources in lobbying and other activities directed at securing protective legislation. Successful rent-seeking activity will increase the net benefits going to the special interest group, but it will also frequently lower net benefits to society as a whole. 7. Government Failure Why don’t the losers rise up to protect their interests? One main reason is voter ignorance. 7. Government Failure Rent seeking can take many forms: Producers can seek protection from competitive pressures brought by imports or can seek price floors to hold prices above their efficient levels. Consumer groups can seek price ceilings or special subsidies to transfer part of their costs to the general body of taxpayers. 8. The Pursuit of Efficiency 8.1 Private Resolution through Negotiation 8.2 The Courts: Property Rules and Liability Rules 8.3 Legislative and Executive Regulation 8.1 Private Resolution through Negotiation Private negotiation is the simplest means to restore efficiency when the number of affected parties is small, making negotiation feasible. 8.1 Private Resolution through Negotiation Discussion of individual negotiations raises two questions: Should the property right always belong to the party who gained or seized it first? How can environmental risks be handled when prior negotiation is clearly impractical? 8.2 The Courts: Property Rules and Liability Rules The court system can respond to environmental conflicts by imposing either property rules(产权原则) or liability rules(责任原则). Property rules (产权
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