EC238 Lecture Notes - Lecture 8: Jack D. Fischer, Unintended Consequences, Social Cost
Document Summary
Intro: opposition to environmental policies frequently focus on costs. Importance of accurate cost measurement has often been underestimated. The cost perspective general issues: cost analysis can be done on many levels single community/project, industry/region, entire economy, higher the level requires harder estimation methods. Jack fischer: no-cost improvements environmental improvements that result from changes in regulations; these have no social cost, only political cost of making changes in laws or regulations, ex. Costs of single facilities: easiest type of cost analysis is for a single engineered project of some type, facility-type projects like these (ex. Public wastewater treatment plant) are individualized and substantially unique: estimation of costs placed on engineering and technical specifications developed largely through experience with similar types of facilities. Understate emissions, overestimate costs: may lead to less stringent regulations, actual vs minimum pollution-control costs. Important question of whether meeting policy standards are the least costs necessary to achieve the emissions reductions sought.
