Bài giảng Economics of Social Issues - Chapter 4 Pollution Problems: Must We Foul Our Own Nests?

Chapter 4Pollution Problems: Must We Foul Our Own Nests?Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin4-2What Is Pollution?The Environment and Its ServicesExhaustible resourcesReplaceable resourcesWaste disposalRecycling Wastes and the Concept of PollutionPollution occurs when recycling processes fail to prevent wastes from accumulating in the environment4-3Common Forms of PollutionAir PollutionCarbon monoxideSulfur dioxidesNitrogen oxidesHydrocarbonsParticulatesWater pollutionLevel of dissolved oxygenMaterials and matterLand pollutionDumping of wastesTearing up Earth’s surface4-4Demand and Marginal Private Benefit12345624681012 $Quantity of pizza D = MPB14The demand curve is a marginal private benefit curve4-5Externality in Consumption12345624681012 $HIV vaccine MPB MSB14MSB = MPB ± Externality4-6Supply and Marginal Private Cost1234565678 910 $Quantity of pizza11S = MPC4-7Externality in Production1234565678 910 $Quantity of pizza11MSCMSC = MPC ± ExternalityS = MPC4-8Market Equilibrium without Externalities12345624681012 $Quantity of pizza D = MPB14S = MPC3.574-9Why Polluters PolluteProperty rights in the environment either nonexistent or not enforcedMuch of environment’s services shared by entire population4-10Pollution and Resource AllocationReams per dayPrice $D = MPB = MSBS = MPCMSC91011r1r0ABCLoss of well-being to society4-11Pollution and Resource AllocationKilowatt-hours per dayPrice $D = MPB = MSBS = MPCMSC1012r1r0ABCThe Appropriate Level of Pollution Control(1)(2)(3)(4)(5)(6)(7)Pollution Control or Eliminated StenchTotal Social Cost of Control ($000)Marginal Social Cost of Control ($000)Per-Person Marginal Benefit of ControlMarginal Social Benefit of Control ($000)Total Social Benefit of Control ($000)Net Social Benefit of Control ($000)1st 10%101010.00100100902nd 10%20108.00801801603rd 10%30106.00602402104th 10%40104.00402802405th 10%50102.00203002506th 10%60101.60163162567th 10%70101.20123282588th 10%8010.8083362569th 10%9010.40434025010th 10%10010.2023422424-124-13What Can Be Done About Pollution? Direct ControlsAssumes regulatory agency can determine economically desirable level of pollutionAchieving efficient allocation of permissible pollution among polluters4-14What Can Be Done About Pollution? Indirect ControlsPollution control100%10%C*ZT2T1T*MB = MPB = MSBMC = MPC = MSC Dollars per unit4-15What Can Be Done About Pollution?Creation of Pollution Rights MarketsPollution rights licensePollution rights marketClean Air Act of 1990The 2009 debate over “cap-and-trade”