ch08-The Economics of the Public Sector(6)

曼昆微观经济学分册英文版 教材PPT

Pollution: A Negative Externality 环境污染： 环境污染：负外部性Example of negative externality: Air pollution from a factory.

The firm does not bear thefull cost of its production, and so will produce more than the socially efficient quantity. How govt may improve the market outcome:

Impose a tax on the firm equal to theexternal cost of the pollution it generates5

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