Microeconomics,, 16th Canadian Edition

Key Concepts 403

Study Exercises 403

Chapter 17 The Economics of Environmental Protection 407

17. 1 The Economic Rationale for Reducing Pollution 408
    Pollution as an Externality 408
    The Optimal Amount of Pollution Abatement 409


18. 2 Pollution-Reduction Policies 411
    Direct Regulatory Controls 411
    Emissions Taxes 413
    Tradable Pollution Permits: “Cap and Trade” 415
    Pricing Pollution 417


19. 3 The Challenge of Global Climate Change 418
    Greenhouse-Gas Emissions 418
    The Case for Global Collective Action 420
    Energy Use, GDP, and Greenhouse-Gas Emissions 422
    Significant Policy Challenges 425
    Summary 427
    Summary 428
    Key Concepts 429

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