MGPO 440 Lecture Notes - Lecture 6: Negative Cost, Groundwater Recharge, Behavioral Economics
23 Jan 2018
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Document Summary
Economics = study of how ppl interact with each other & with their natural surroundings in producing their livelihoods & how this changes over time. Decisions in the future, our priorities change & it is very difficult to predict our opinions/ preferences. Externality: losses that are costly to third parties that were caused by an activity & not necessarily intended. Economic models will reflect our beliefs, but cannot prescribe our policies (future returns for climate change) It is tough to manage public goods (commons & externalities) It is hard to think in the long run & difficult to use economic language to describe l-t problems and concerns (discount rates & eco impacts of climate change as an example) How do we form systems to not fall into these traps? (of overusing the commons) Should we consider the atmosphere a common.
