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Chapter 17 Externalities: The Free Market-Interventionist Battle Continues.

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Presentation on theme: "Chapter 17 Externalities: The Free Market-Interventionist Battle Continues."— Presentation transcript:

1 Chapter 17 Externalities: The Free Market-Interventionist Battle Continues

2 Copyright © 2001 Addison Wesley LongmanSlide 17- 2 Figure 17.1 Dolans Water-Paper Society

3 Copyright © 2001 Addison Wesley LongmanSlide 17- 3 Figure 17.2 Pigouvian Taxes

4 Copyright © 2001 Addison Wesley LongmanSlide 17- 4 Figure 17.3 The Effect of an Environmental Charge on a Single Firm

5 Copyright © 2001 Addison Wesley LongmanSlide 17- 5 Figure 17.4 The Effects of an Environmental Charge on Two Firms

6 Copyright © 2001 Addison Wesley LongmanSlide 17- 6 Figure 17.5 A Market for Pollution Permits

7 Copyright © 2001 Addison Wesley LongmanSlide 17- 7 Figure 17.6 Plotts Laboratory Model of a Market with an Externality

8 Copyright © 2001 Addison Wesley LongmanSlide 17- 8 Figure 17.7(a) The Results of Plotts Experiment to Investigate the Behavior of a Market with an Externality

9 Copyright © 2001 Addison Wesley LongmanSlide 17- 9 Figure 17.7(b) The Results of Plotts Experiment to Investigate the Behavior of a Market with an Externality

10 Copyright © 2001 Addison Wesley LongmanSlide 17- 10 Figure 17.8 The Results of Plotts Experiments to Evaluate the Interventionist Solutions to an Externality: The Pigouvian Tax

11 Copyright © 2001 Addison Wesley LongmanSlide 17- 11 Figure 17.9 The Results of Plotts Experiments to Evaluate the Interventionist Solutions to an Externality: Permits

12 Copyright © 2001 Addison Wesley LongmanSlide 17- 12 Figure 17.10 The Results of Plotts Experiments to Evaluate the Interventionist Solutions to an Externality: Standards


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