EC238 Lecture Notes - Lecture 3: Market Failure, Discounting, Green Accounting
Document Summary
Is concerned with issues of market failure, excessive production of pollution or insufficient protection of the natural world; Production and use of natural resources (both renewable and exhaustible) Dynamic approach: time is the essence of the problem some overlaps though: Warming is a pollution problem with a very long time frame. Failure of markets is important in the management of a fishery (free entry). As keynes says, it deals with what is", not with "what ought to be". Its task is to provide a system of generalizations that can be used to make correct predictions. Dealing with global environmental problems trade and the environment. Natural ecosystems, economy and well being of our residents. lomoar cpsd| 5490467. Different perspectives while considering long run environmental problems (global warming, nuclear waste management) Environmental economists apply a discount factor on future costs and benefits of regulating the environment. Ecological economists rest on the notion of sustainability.
