Chapter Outline
17.1 The Economic Rationale for Reducing Pollution
17.2 Pollution-Reduction Policies
17.3 The Challenge Of Global Climate ChangeAFTER STUDYING THIS CHAPTER YOU WILL BE ABLE TO
In almost everything we do, we are subject to some form of government
regulation. The system of criminal law regulates our interactions with
Learning Objectives (LO)
1. explain how an externality can be internalized, and how this can
lead to allocative efficiency.
2. describe why direct pollution controls are often inefficient.
3. describe how market-based policies, such as emissions taxes and
cap-and-trade systems, can improve economic efficiency.
4. discuss the technical and economic challenges of addressing
global climate change.