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Pigovian Tax
A Pigouvian tax (also spelled Pigovian tax) is a tax on any market activity that generates negative externalities (i.e., external costs incurred by the producer that are not included in the market price). The tax is normally set by the government to correct an undesirable or inefficient market outcome (a market failure), and does so by being set equal to the external marginal cost of the negative externalities. In the presence of negative externalities, social cost includes private cost and external cost caused by negative externalities. This means the social cost of a market activity is not covered by the private cost of the activity. In such a case, the market outcome is not efficient and may lead to over-consumption of the product. Often-cited examples of negative externalities are environmental pollution and increased public healthcare costs associated with tobacco and sugary drink consumption.. In the presence of positive externalities (i.e., external public benefits gain ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market (economics)
In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labour power) to buyers in exchange for money. It can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any tradeable item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of services and goods. Markets generally supplant gift economies and are often held in place through rules and customs, such as a booth fee, competitive pricing, and source of goods for sale (local produce or stock registration). Markets can ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pecuniary Externality
A pecuniary externality occurs when the actions of an economic agent cause an increase or decrease in market prices. For example, an influx of city-dwellers buying second homes in a rural area can drive up house prices, making it difficult for young people in the area to buy a house. The externality operates through prices rather than through real resource effects. This is in contrast with technological or real externalities that have a direct resource effect on a third party. For example, pollution from a factory directly harms the environment. As with real externalities, pecuniary externalities can be either positive (favorable, as when consumers face a lower price) or negative (unfavorable, as when they face a higher price). The distinction between pecuniary and technological externalities was originally introduced by Jacob Viner, who did not use the term ''externalities'' explicitly but distinguished between ''economies'' (positive externalities) and ''diseconomies'' (negative ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Carbon Tax
A carbon tax is a tax levied on the carbon emissions required to produce goods and services. Carbon taxes are intended to make visible the "hidden" social costs of carbon emissions, which are otherwise felt only in indirect ways like more severe weather events. In this way, they are designed to reduce carbon dioxide ( ) emissions by increasing prices of the fossil fuels that emit them when burned. This both decreases demand for goods and services that produce high emissions and incentivizes making them less carbon-intensive. In its simplest form, a carbon tax covers only CO2 emissions; however, it could also cover other greenhouse gases, such as methane or nitrous oxide, by taxing such emissions based on their CO2-equivalent global warming potential. When a hydrocarbon fuel such as coal, petroleum, or natural gas is burned, most or all of its carbon is converted to . Greenhouse gas emissions cause climate change, which damages the environment and human health. This negative ex ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ecotax
An environmental tax, ecotax (short for ecological taxation), or green tax is a tax levied on activities which are considered to be harmful to the environment and is intended to promote environmentally friendly activities via economic incentives. A notable example is carbon tax. Such a policy can complement or avert the need for regulatory (command and control) approaches. Often, an ecotax policy proposal may attempt to maintain overall tax revenue by proportionately reducing other taxes (e.g. taxes on human labor and renewable resources); such proposals are known as a green tax shift towards ecological taxation. Ecotaxes address the failure of free markets to consider environmental impacts. Ecotaxes are examples of Pigouvian taxes, which are ''taxes that attempt to make the private parties involved feel the social burden of their actions''. An example might be philosopher Thomas Pogge's proposed Global Resources Dividend. Taxes affected Examples of taxes which could be lo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hold-up Problem
In economics, the hold-up problem is central to the theory of incomplete contracts, and shows the difficulty in writing complete contracts. A hold-up problem arises when two factors are present: #Parties to a future transaction must make noncontractible relationship-specific investments before the transaction takes place. #The specific form of the optimal transaction (such as quality-level specifications, time of delivery, what quantity of units) cannot be determined with certainty beforehand. The hold-up problem is a situation where two parties may be able to work most efficiently by cooperating but refrain from doing so because of concerns that they may give the other party increased bargaining power and thus reduce their own profits. When party A has made a prior commitment to a relationship with party B, the latter can 'hold up' the former for the value of that commitment. The hold-up problem leads to severe economic cost and might also lead to underinvestment. Underinves ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ronald Coase
Ronald Harry Coase (; 29 December 1910 – 2 September 2013) was a British economist and author. Coase received a bachelor of commerce degree (1932) and a PhD from the London School of Economics, where he was a member of the faculty until 1951. He was the Clifton R. Musser Professor of Economics at the University of Chicago Law School, where he arrived in 1964 and remained for the rest of his life. He received the Nobel Memorial Prize in Economic Sciences in 1991. Coase believed economists should study real-world wealth creation, in the manner of Adam Smith, stating, "It is suicidal for the field to slide into a hard science of choice, ignoring the influences of society, history, culture, and politics on the working of the economy." He believed economic study should reduce emphasis on Price Theory or theoretical markets and instead focus on real markets. He established the case for the corporation as a means to pay the costs of operating a marketplace. Coase is best known for ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rent-seeking
Rent-seeking is the act of growing one's existing wealth without creating new wealth by manipulating the social or political environment. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic efficiency through misallocation of resources, reduced wealth creation, lost government revenue, heightened income inequality, and potential national decline. Attempts at capture of regulatory agencies to gain a coercive monopoly can result in advantages for rent-seekers in a market while imposing disadvantages on their uncorrupt competitors. This is one of many possible forms of rent-seeking behavior. Description The term rent, in the narrow sense of economic rent, was coined by the British 19th-century economist David Ricardo, but rent-seeking only became the subject of durable interest among economists and political scientists more than a century later after the publication of two influential papers on the topic by Gordon Tullock in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Command And Control Regulation
Command and Control (CAC) regulation finds common usage in academic literature and beyond. The relationship between CAC and environmental policy is considered in this article, an area that demonstrates the application of this type of regulation. However, CAC is not limited to the environmental sector and encompasses a variety of different fields. Definition Command and Control (CAC) Regulation can be defined as “the direct regulation of an industry or activity by legislation that states what is permitted and what is illegal”.McManus, P. (2009) Environmental Regulation. Australia: Elsevier Ltd. This approach differs from other regulatory techniques, e.g. the use of economic incentives, which frequently includes the use of taxes and subsidies as incentives for compliance.Baldwin, R., Cave, M., Lodge, M. (2011) Understanding Regulation: Theory, Strategy and Practice. 2nd ed. Oxford: Oxford University Press The ‘command’ is the presentation of quality standards/targets by a gov ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Deadweight Loss
In economics, deadweight loss is the difference in production and consumption of any given product or service including government tax. The presence of deadweight loss is most commonly identified when the quantity produced ''relative'' to the amount consumed differs in regards to the optimal concentration of surplus. This difference in the amount reflects the quantity that is not being utilized or consumed and thus resulting in a ''loss''. This "deadweight loss" is therefore attributed to both, producers and consumers because neither one of them benefits from the surplus of the overall production. Deadweight loss can also be a measure of lost economic efficiency when the socially optimal quantity of a good or a service is not produced. Non-optimal production can be caused by monopoly pricing in the case of artificial scarcity, a positive or negative externality, a tax or subsidy, or a binding price ceiling or price floor such as a minimum wage. Examples Assume a market for nai ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lans Bovenberg
Arij Lans Bovenberg (born June 15, 1958) is a Dutch economist, and Professor of Economics at the Tilburg University and Erasmus University, known mainly due to his contribution to the Dutch debate on population ageing, pension reforms and public finances. Lans Bovenberg was awarded the Spinoza Prize in 2003. Biography Bovenberg was born and raised in Oosterbeek in the Netherlands. Between 1976 and 1981 he studied econometrics at the Erasmus University. Teun Kloek supervised his MSc thesis (doctoraalscriptie) From 1981 to 1984 he studied at the University of California, Berkeley. He obtained his PhD in economics there at the end of 1984 for the dissertation entitled ''Capital Accumulation and Capital Immobility: Q-theory in a Dynamic General Equilibrium Framework''. After graduation he lived in the US, working at the International Monetary Fund. In 1990 he returned to the Netherlands and after a brief period at the Ministry of Economic Affairs he became a professor of economi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gilbert E
Gilbert may refer to: People and fictional characters * Gilbert (given name), including a list of people and fictional characters *Gilbert (surname), including a list of people Places Australia * Gilbert River (Queensland) * Gilbert River (South Australia) Kiribati * Gilbert Islands, a chain of atolls and islands in the Pacific Ocean United States * Gilbert, Arizona, a town * Gilbert, Arkansas, a town * Gilbert, Florida, the airport of Winterhaven * Gilbert, Iowa, a city * Gilbert, Louisiana, a village * Gilbert, Michigan, and unincorporated community * Gilbert, Minnesota, a city * Gilbert, Nevada, ghost town * Gilbert, Ohio, an unincorporated community * Gilbert, Pennsylvania, an unincorporated community * Gilbert, South Carolina, a town * Gilbert, West Virginia, a town * Gilbert, Wisconsin, an unincorporated community * Mount Gilbert (other), various mountains * Gilbert River (Oregon) Outer space * Gilbert (lunar crater) * Gilbert (Martian crater) Arts an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics Of Climate Change
The economics of climate change concerns the economic aspects of climate change; this can inform policies that governments might consider in response. A number of factors make this and the politics of climate change a difficult problem: it is a long-term, intergenerational problem; (pb: benefits and costs are distributed unequally both within and across countries; and both the scientific consensus and public opinion on climate change need to be taken into account. Effects of climate change may last a long time, such as sea level rise which will not be reversed for thousands of years. The long time scales and uncertainty associated with global warming have led analysts to develop "scenarios" of future environmental, social and economic changes. These scenarios can help governments understand the potential consequences of their decisions. One of the responses to the uncertainties of global warming is to adopt a strategy of sequential decision making. This strategy recognizes tha ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
