TOPIC 9: Pollution and Environmental Problems
Required Readings:
- Hall & Lieberman, Chapters 14-15
- The Wall Street Journal
STUDY QUESTIONS FOR TOPIC 9:
- Why do we have a pollution problem?
- What is an externality? Why do they exist?
- What are the benefits of pollution? What are the costs?
- Who benefits from pollution? Who bears the costs?
- How much pollution would be optimal?
- How would an economist reduce pollution?
- What is an effluent tax?
