Guide to the Web for Economics


CHAPTER 15

The Environment and Externalities


Socially efficient resource allocation occurs when all benefits and all costs are incorporated into markets. Externalities occur when some benefits and/or some costs are not reflected in the market, distorting prices and output and leading to market inefficiency. The presence of externalities creates an opportunity for government intervention to improve market outcomes by better defining and enforcing property rights. Web resources in this chapter relate to: 1) associations and organizations that conduct research on the environment, 2) groups concerned with the preservation, conservation, protection, and restoration of environmental resources, 3) government projects, publications, laws, regulations, and research on the environment, 4) reports on environmental issues such as emissions reduction and global warming, 5) property rights issues, transactions costs, and the Coase Theorem, and 6) the Clean Air Act and the pollution permit system. These resources are organized as follows:


Environmental Economics: Associations and Research Organizations

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Environmental Groups and Organizations

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Government and the Environment

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Environmental Issues

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Property Rights Issues

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Tradable Pollution Permits and the Environment


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