How to address negative externalities

Question 1: Give examples of how to address positive and negative externalities Corrective Taxes Corrective taxes, also known as Piggot Taxes, are based on the idea that the sender of a negative externality must pay a tax on each unit of external behavior.

1.2 Corrective Subsidies

These subsidies provide subsidies for both positive and negative externalities, where subsidizing a positive externality is equivalent to expanding its externalities to the effect of increasing social welfare, while subsidizing a negative externality suggests a bribe to the polluter.

2 Comparison of Public **** Policy Instruments and the Coase Theorem

The two main instruments of internalization of external effects are presented, namely the public **** policy instrument represented by the Peguy tax and the negotiation of resources of the property rights theory to solve the problem of externality represented by the Coase Theorem. Both taxation and negotiation are designed to internalize externalities, and both allow economic parties to choose the best option through cost-benefit comparisons in order to achieve their goals. And under certain constraints of economic conditions and specific externality situations, the two major means of resolution have their own characteristics. Therefore, in order to fully play the role of the two means, must be clear about their characteristics and scope of application.

2.1 Characteristics of a Peguard Tax

*** A tax is used to enable polluting firms to price their products to achieve optimal yields, taking into account the resulting social cost losses. The features are:

(1) The imposition of a corrective tax increases the social cost, i.e., the externality to society, of the manufacturer's production function on top of his private production function. Thus, in the supply and demand local equilibrium system, this new supply curve and consumer demand curve equilibrium point to reach a new position, so that the social production to reach the optimum, reduce the production of polluting products, so that the negative external effects internalized.

(2) The collection of the Pegu tax increases the cost of enterprises, so that they bear the loss of social costs, and, the more pollutants emitted, the more taxes they pay, which will inevitably increase the cost of production and operation of enterprises. Under the tendency of manufacturers to maximize profits, manufacturers will improve the technological content of products and reduce the emission of pollution, so that the pollution situation of the whole industry has been improved.

(3) According to the taxation principle of the Pegu tax, it follows the guideline of taxing the output side of pollution. According to the Pegu tax, *** has strong control in governing the emission of pollutants by the enterprises that restrict the emission of pollutants, on the one hand, make the manufacturers pay the cost of their negative externalities to reduce the emission of pollutants; on the other hand, by raising funds to compensate the victims of their negative externalities, while providing subsidies to the positive externality enterprises to improve their production capacity. From a tax point of view, the increase in Peguy tax can regulate supply relations and replace various other sources of revenue from negative externalities, such as arbitrary fees and charges. 2.2 Characteristics of externality governance based on the Coase Theorem

(1) According to the Coase Theorem, the effects of an externality are not a single problem of one party infringing on the other, but are mutual. It is unfair to solve it only by imposing a Peguy tax. In fact, the essence of the problem of externalities is to avoid extending the damage.

(2) The core of the Coase Theorem lies in the clarity of property rights, as long as the property rights are clear, in the case of zero transaction costs, regardless of who owns the property rights, the allocation of resources is efficient, and can be based on the voluntary transaction of the private contractual behavior of the market functioning of the self-correction. Therefore, the essence of the Coase theorem is the economic institutional arrangement of the different allocation of social resources results.

(3) The elaboration of the Coase Theorem in the theory of property rights reveals that the root of the problem of externalities lies in the competing demands for the use of resources caused by scarcity.

From the above analysis, it can be seen that the tax policy under the public **** policy and the principle of property rights in the Coase Theory are both aimed at adjusting the allocation of resources among the economic agents of the society under the limited resources, but with different emphasis. Both means of negative externalities, especially pollution and other social and environmental problems put forward the possibility of governance, but the current economic situation, the imposition of the Pegu tax is relatively speaking than the property rights theory under the voluntary negotiated settlement to produce a large social effect, the following specific analysis of the advantages of the Pegu tax in this regard and the shortcomings of the property rights theory.

3 Comparison of the social effects of the Pegu tax and the Coase Theorem on pollution control

(1) The Coase Theorem requires that property rights should be clear, but in practice, it is impossible to do so or the cost of defining property rights is extremely high.

Because of the ambiguity of property rights in public ****, the right to use it belongs nominally to the public, but in practice anyone is free to use it without the consent of others or the payment of appropriate fees. The costs of monitoring and enforcement necessary to clarify property rights are not only significantly higher than the damages caused by pollution, but may be too high for human society to bear, thus rendering voluntary consultation meaningless. In such cases, *** it is possible to intervene in the market mechanism so that the damagers take into account the social costs of their activities and incorporate them into their private costs, i.e. internalize them. *** The measure that can be taken is taxation (Peguy tax), because *** can tax external uneconomic behavior ...... >>

Question 2: According to microeconomics theory, what are the ways to manage externalities The problem of environmental pollution is described as an externality problem (Externality) in economic theory and is a negative externality. Baidu knows the definition: externalities, also known as spillover effects, external influences, or outlier effects, refer to situations in which the actions and decisions of one person or group of people damage or benefit another person or group of people. Economic externalities are non-marketable impacts on others and society caused by the economic activities of economic agents (including manufacturers or individuals). That is, members of society (including organizations and individuals) engaged in economic activities when their costs and consequences are not fully borne by the actor. Divided into positive externalities (positiveexternality) and negative externalities (negativeexternality). Positive externality is an economic behavior of individual activities to the benefit of others or society, and the beneficiary does not have to spend the cost, negative externality is an economic behavior of individual activities to the detriment of others or society, and the person who caused the external uneconomical but did not bear the cost. Impact on resource allocation Externalities can cause market mechanisms to fail and incentives to be distorted: a positive externality causes the rewards that should be paid to go unpaid, leading to under-supply, while a negative externality is one in which the costs to society outweigh the costs to the individual, leading to over-supply and exacerbated costs. Correcting externalities is the only way to restore the ability of the market mechanism to allocate resources rationally. Economists have also come up with a series of solutions to this problem. Pegu studied the problem of negative externalities earlier, and proposed a tax on manufacturers to curb their environmental pollution, which was also known as the "Pegu tax". Of course, for the behavior that generates positive externalities, it is necessary to do the opposite, by *** subsidies rather than taxes. In addition, Coase later put forward the famous Coase Theorem, from the perspective of the definition of property rights to propose a solution to this problem. That's about it, see Baidu encyclopedia for details, which makes it particularly clear.

Question 3: What is an externality, and give examples of positive and negative externalities? Externalities, also known as external effects, refers to the economic activities or behavior of individuals to other members of society without bearing the costs or benefits of these effects. Externalities are categorized into positive and negative externalities. Positive externalities, also known as external economies, are those where an individual's economic activity or behavior brings benefits to other members of society, but he himself is not compensated accordingly. Negative externalities, also known as external diseconomies, refer to an individual's economic activity or behavior that causes damage to other members of society, but he himself does not bear the corresponding costs. Externalities are widespread in real economies. Both positive and negative externalities can lead to market failure and affect the market allocation of resources. Since externalities make resource allocation inefficient, in the real economy, both market participants and the public *** sector govern externalities in various ways so that resource allocation is at or near the optimal level required by society. *** Direct regulation, taxes and subsidies can be used to address externalities. For behaviors with negative externalities, *** taxes can be levied, the size of which should be equal to the cost of the behavior to society. For behaviors with positive externalities, *** subsidies can be given.

Question 4: Who are the main characters in the first round of Water Margin, in which Instructor Wang takes a private walk to Yan'anfu and the Nine-Tattooed Dragon makes a mess of Shi's village? Nine Dragons Shi Jin ~ White Flower Snake Yang Chun ~ Jumping Stream Tiger Chen Da ~ Divine Mechanical Warrior Zhu Wu ~

Wang Jin was not in

Question 5: What is externality, talk about how to manage environmental pollution The concept and classification of externality:

1. Externalities (externality) is a British welfare economist Piku first put forward, and by the United States new institutional economist Coase to enrich and improve an important economic concept. In economic life, the problem of externality or externality is widespread. The so-called externality refers to the phenomenon that the behavior of goods and services produced and consumed by an economic agent is not mediated by the market, but has additional effects on other economic agents. It can be understood as an interaction between economic agents that is not properly reflected in production and consumption, or as the impact of one economic agent on the welfare of others that is not reflected in the normal operation of the price system. In other words, it is a non-market influence of one party on the other, and this influence can not be reflected in prices and can not affect the ability of the market to allocate resources efficiently.

2. Positive and negative externalities. Externalities can be divided into positive and negative externalities. In this regard, Picasso and Coase through the private gains and social gains, private costs and social costs of such economic concepts, externality and positive and negative externality for further explanation. Positive externalities, i.e., external economy means that when an individual consumes a particular good, society also receives an external benefit, and the marginal benefit to society is higher than the marginal benefit to the individual, e.g., education, public **** health, communication and social order. Negative externalities, that is, external diseconomies, refers to the enterprise not only to pay the individual marginal cost, but also to make society pay the external cost, social marginal cost is greater than the individual marginal cost, such as environmental pollution, congestion and so on. From this point of view, the basic internal aspects of externalities, leading cadres should also focus on improving their own quality, and strive to enhance the ideological awareness, moral character and working ability. Fourth, we should adhere to the principle of combining ideological and political work with "hard" management. Ideological and political work should be based on persuasion and education, but strict organizational discipline is also necessary. Through the implementation of "hard" system, "hard" measures, "hard" indicators, "hard" discipline, so that enterprise management The first step in the process is to make sure that you have the best possible chance of getting the best out of your business.

How to control environmental pollution

1, reduce pollutant emissions. Reform of the energy structure, the use of non-polluting energy (such as solar, wind, hydropower) and low-polluting energy (such as natural gas), pretreatment of fuels (such as desulfurization of coal before burning), improve combustion technology can reduce emissions. In addition, before the pollutants enter the atmosphere, the use of dust removal and elimination of smoke technology, condensation technology, liquid absorption technology, recycling technology, etc. to eliminate some of the pollutants in the exhaust gas, can reduce the amount of pollutants entering the atmosphere.

2, control emissions and make full use of the self-purification capacity of the atmosphere. Different meteorological conditions, the capacity of the atmosphere to pollutants will be different, the same amount of pollutants discharged into the pollutant concentration will be different. For windy, well ventilated, convective areas and times, the atmosphere has a strong diffusion and dilution capacity, and can accept more activities of factories and mining enterprises. In areas and times of inversion, the atmospheric diffusion and dilution capacity is weak, so it can not accept more pollutants, otherwise it will cause serious air pollution. Therefore, should be different areas, different times for the effective control of emissions. For example, part of the county's air emissions of enterprises should not also strengthen the management and governance.

3, plant site selection, chimney design, urban and industrial planning should be reasonable, do not emit a large number of transitional concentration, do not cause repeated iterative pollution, the formation of a local serious pollution events. Should be placed in such a place in the open, air circulation, population density is relatively thin.

4, greening and afforestation, so that there are more plants to absorb pollutants and reduce the level of air pollution, afforestation, reforestation and ecological reconstruction is extremely important. Management of sandy cropland, control soil erosion, wind and sand, increase soil water storage capacity, can greatly improve the ecological environment, reduce the loss of floods and floods, and with the economic forests one after another into the maturity of the direct economic benefits and indirect economic benefits are huge.

5, to take comprehensive measures to control agricultural pollution, to guide farmers in the scientific application of fertilizers, pesticides, and actively promote the soil testing and formulation of fertilizer, the implementation of straw return to the field, encourage the use of farmyard manure and new organic fertilizers. Encourage the use of bio-pesticides or high-efficiency, low-toxicity, low-residue pesticides, and promote integrated control of crop diseases, pests and weeds and biological control. Encourage the recycling and reuse of agricultural films. Strengthen the comprehensive utilization of straw, the development of biomass energy, the implementation of straw gasification projects, biogas projects, straw power generation projects, etc., and prohibit open burning of straw in the no-burn zone.

6, is to improve the harmlessness of the garbage, reduce the amount of resources to deal with ...... >>

Question 6: Economics after-school answers, what are the characteristics of externalities? How can externalities be managed? The characteristics of externalities are: externalities are independent of the market mechanism, with the accompanying; externalities are bound to harm or enhance the welfare of others; the existence of externalities is "mandatory"; externalities can not be completely eliminated. Measures to address externalities include: taxes and subsidies; "internalizing" externalities through mergers; and clarifying property rights (Coase Theorem).

Question 7: Discuss *** What measures can be taken to correct externalities? An externality is a non-market influence exerted by the economic activity of one economic unit on other economic units, non-market refers to an activity that generates costs or benefits that are not reflected in market prices, but are unconsciously imposed on others, there are positive externalities, some call them externalities, which refers to the positive influence of one economic agent on other economic agents, bringing benefits to others without compensation. benefits for others. On the contrary, an economic activity that produces negative externalities. (external diseconomies) negatively affects other economic units, imposing costs on others.

There are many examples of externalities, such as a beekeeper and a farmer who cuts down on fruit trees exert a positive influence on each other, and their behavior is a typical external economy, the farmer provides a source of bees for the bees, increasing the output of the beekeeper-producer. At the same time, the process of peak honey harvesting accelerates the pollination of the fruit trees and increases the production of fruits, and both parties unconsciously benefit each other. The example of a firm emitting a source of pollution is a typical example of external diseconomies.

Since the inefficiency of resource allocation due to externalities is due to the deviation between the costs that the private sector spends on decision making and the costs that society actually pays, the guiding principle in correcting for the effects of externalities is to internalize the external economic impacts and to provide decision makers with incentives to measure the externalities of their decisions.

*** The main measures that can be taken to correct for externalities are taxes, subsidies, business mergers, and clarification of property rights.

Taxes and Subsidies

One means of forcing firms to take account of external costs or benefits is to *** adopt a policy of taxes and subsidies, i.e., to impose taxes on firms that impose external diseconomies that are exactly equal to the external marginal cost, and to grant subsidies to firms that provide external economies that are equal to the external marginal incoming revenue, in order to make the firms' private marginal costs equal to their social marginal costs. The vendor is induced to provide optimal output.

But the biggest problem with this approach is how to accurately measure the cost-benefit of an externality in monetary terms, e.g., how much the social costs of polluting the environment are said to be, so sometimes *** only approximate these costs.

Business Mergers

Merging economic units that impose and receive external costs or benefits is a second means of addressing externalities, if the effects of the externality are small, such as a small restaurant polluting a laundromat, then *** steps in and sells the laundromat to the restaurant at a price that is suitable, and through the merger, the external costs are internalized.

Clarifying property rights

The theory of property rights, popular in the West, proposes market-based ideas to address the effects of externalities.

The content of Coase's theorem: as long as the property rights are clear, the final effect is efficient, no matter who the initial property rights are assigned to, under the condition of zero transaction costs.

Example: Zhang San, Li Si live in the same dormitory, Zhang San likes quiet, and Li Si likes to listen to music, although, Li Si's behavior on Zhang San caused external diseconomies, Option 1: assumed that Zhang San endured, or Li Si does not listen to music, they can not tolerate, assuming that the loss is 100 yuan. Option 2: Li Si buys headphones for $10, according to Coase's Theorem, if the school rules that Zhang San has the right to quiet, he can report to the school's department of the report, and ask Li Si not to interfere with him, at which point, Li Si in order to be able to continue to listen to the music, so that he had to spend $10 to buy headphones.

Further, the stipulation of the initial right is not crucial to the final outcome; if the school stipulates that Li Si has the right to listen to music, then Zhang San, overwhelmed by the noise, can either put up with it or negotiate with Li Si, and, if Zhang San is rational, he will choose to spend the $10 to buy Li Si a headset.

The policy implication of Coase's theorem in solving the problem of external economic impacts is that *** without direct regulation of external economic impacts, market negotiation can solve the problem as long as it clarifies the property rights of the two parties who impose and receive external costs or benefits.

The limitation is that the implicit conditions of Coase's theorem restrict its application in practice; firstly, the negotiation must be open and costless (transaction costs = 0). Secondly, the externality affects only a few of the parties involved.

Question 8: What is an externality Talk about how to control environmental pollution Suggestions on how to control urban environmental pollution

Since the reform and opening up, with the rapid growth of the national economy and the overall progress of the society, the process of urbanization has accelerated. 1978 to 2004, the number of cities increased from 193 to 661, and the number of towns increased from 2,173 to 20,312, with a total population of 1.7 billion people in the towns. Between 1978 and 2004, the number of cities increased from 193 to 661, the number of towns increased from 2,173 to 20,312, and the total population of towns and cities increased from 170 million to 540 million, with the proportion of the country's total population rising from 17.9% to 41.8%. Such a rapid urbanization will surely pose a greater impact on China's fragile ecological environment. Huge population pressure, increasingly scarce resources and deteriorating environmental quality have become constraints to urban development. With the rapid development of urbanization worldwide, cities as a special ecosystem, while showing a great impetus to economic development and social progress, serious environmental problems have also emerged.

First, there are major pollution problems

First, urban water pollution is still very prominent. With the expansion of urban scale, the rapid growth of domestic sewage discharge, in 1998 for the first time more than industrial wastewater emissions. 2001, the national industrial wastewater emissions of 20.07 billion tons, urban and rural sewage discharged 22.77 billion tons, of which the COD emissions of domestic sewage increased by 8% over the previous year, while industrial wastewater COD emissions during the same period was reduced by 13.8%. At present, the national urban sewage treatment rate of only 34.3%. Urban rivers have become sewage ditches. Large amounts of sewage discharged directly into the urban water environment deterioration, the seven major river basins in urban river sections have formed a clear pollution zone, there are a number of cities in the drinking water source is also polluted.

Secondly, urban air pollution characterized by particulate matter in northern cities and acid rain in southern cities is still relatively serious. The national urban gas penetration rate of only 60.2%, a considerable number of cities are still using coal as the main civilian fuel, a large number of coal-burning caused by soot-type pollution, sulfur dioxide concentration of the annual average value of the national secondary standards of the city accounted for 21%. Many cities are affected by acid rain, and the high level of particulate matter in urban air is due to the large number of urban *** surfaces, unstandardized management of construction sites, and sloppy collection and transportation of residual soil and garbage. Of the 338 cities in the country, 63.5% do not meet the national air quality standard.

Third, domestic garbage is not properly disposed of, seriously affecting the environmental quality of surface water and groundwater. The annual volume of urban garbage is about 118 million tons, only 60% of which are treated and disposed of to different degrees, and 79 million tons of garbage are simply landfilled or piled up in the suburbs of the city and along the rivers every year, which destroys the natural landscape of the city (especially the urban-rural areas). In addition, the tertiary industry in each city, residents living in various types of waste are mixed collection, medical waste and other special wastes do not have a special centralized treatment facilities, the treatment of ordinary household waste or piling up, become the spread of disease and pollution of the environment of the hidden trouble.

Fourth, motor vehicle exhaust pollution in big cities is becoming more and more prominent. China has become the world's fourth largest producer of automobiles and the third largest consumer, in 2004 the number of cars reached 27.42 million. In recent years, although the elimination of leaded gasoline, restrictions on the content of other harmful substances in gasoline, the new car using EFI plus three-way catalytic, the introduction of new emission standards and other measures, single-vehicle pollutant emissions have been reduced. However, due to the rapid increase in the number of motor vehicles, the total amount of pollutant emissions is still increasing. Cities such as Beijing, Shanghai, Guangzhou, Wuhan, Zhengzhou, Shenyang and other cities are heavily polluted by nitrogen oxides, and carbon monoxide on both sides of the traffic arteries seriously exceeds the standard, and the type of atmospheric pollution in some cities has been changed from soot-type to composite-type. In addition, the road growth and vehicle growth mismatch, modern traffic management tools are not enough, motor vehicles often idle in the situation, but also caused by motor vehicle pollution is increased.

Fifth, noise pollution has become an important environmental problem that affects the quality of life of urban residents. Traffic, social life, building construction is the main source of noise pollution, at present, the transportation of urban noise pollution accounted for 70-80%. In 214 cities where traffic noise monitoring is carried out, 31.3% of the cities are in moderate or heavy pollution level. In 176 cities where regional environmental noise monitoring is carried out, 55.6% of the cities are in moderate or heavy pollution level. In some cities, the construction of elevated bridges to improve traffic conditions, but often failed to solve the problem of noise reduction and sound insulation on both sides of the elevated road, traffic arteries on both sides of the residents' lives are greatly affected.

In addition, urban greening, urban population and other factors are also major problems facing the urban environment, urban life ...... >>

Question 9: What is an externality, and how do you think the problem of externalities should be solved in economic studies The solution to the problem of externalities is usually in terms of negative externalities, and I don't know if the traditional solution you are referring to is that of Prof. Picou. In their view, the principle of dealing with negative externalities is simply that the damager pays for the loss, but this theory is no longer in vogue nowadays, and it is now generally accepted as Coase's theory. That is, negative externalities should be dealt with according to the transaction costs of clear property rights, the key is not to compensate for the loss of the damage but to avoid greater losses.