Enhance Your Learning with Economics - Environmental Externalities Flash Cards for quick learning
The costs or benefits that arise from the production or consumption of goods and services that are not reflected in market prices.
Benefits that are enjoyed by third parties as a result of an economic activity, without compensation.
Costs that are imposed on third parties as a result of an economic activity, without compensation.
A situation where the allocation of goods and services by a free market is not efficient, often due to externalities.
Actions taken by the government to correct market failures and promote social welfare.
Taxes levied on goods or activities that generate negative externalities, with the aim of reducing their consumption or production.
The idea that if property rights are well-defined and transaction costs are low, private bargaining can lead to an efficient resolution of externalities.
Goods that are non-excludable and non-rivalrous, meaning that they are available to all and one person's consumption does not diminish the availability to others.
A situation where individuals, acting in their own self-interest, deplete or degrade a shared resource, leading to its eventual collapse.
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Measures implemented by governments to address environmental issues and promote sustainable practices.
A systematic approach to evaluating the costs and benefits of a proposed project or policy, often used to inform decision-making.
Financial or non-financial rewards or penalties designed to motivate individuals or organizations to behave in a certain way.
A policy approach that puts a price on carbon emissions, either through a carbon tax or a cap-and-trade system, to incentivize emission reductions.
Energy derived from sources that are naturally replenished, such as sunlight, wind, and water, with lower environmental impact compared to fossil fuels.