Pigovian tax
SETS
Theory of Regulation
Public Interest Theory of Regulation
Reasons of regulation with public inter…
Imperfect competition rationale
- Public interest theory ... - Interest group theory
- Government should regulate to promote the public interest... -…
- Imperfect information ... - Imperfect competition... - Externaliti…
- Case of natural monopoly ... - Concentration of firms
Theory of Regulation
- Public interest theory ... - Interest group theory
Public Interest Theory of Regulation
- Government should regulate to promote the public interest... -…
Command & Control Policy
Incentive-based policy
Arthur Pigou
Spillover Costs
Regulations on how a good is made or the amounts of pollution…
Regulations that alter the costs and benefits of polluting to…
"There will be certain rates of... tax, the imposition of which... b…
Costs that are incurred by others that are not involved in the…
Command & Control Policy
Regulations on how a good is made or the amounts of pollution…
Incentive-based policy
Regulations that alter the costs and benefits of polluting to…
why would the government not interfere…
solutions in private negotiations
how can government regulate externaliti…
why is the court system not a good opti…
it would be a private negotiation if there are small number of…
monetary bribe, better property regulation
set max caps, set min reqs, general rules, property rights
high transaction costs
why would the government not interfere…
it would be a private negotiation if there are small number of…
solutions in private negotiations
monetary bribe, better property regulation