In this lecture, we begin to connect the microeconomics foundations from the previous lecture to topics related to sustainability – specifically pollution abatement and conservation problems. We introduce the basic framework of benefits and costs and how maximal net benefits occur when marginal costs and marginal benefits are equal (the equimarginal principle). We discuss the basic concave shape of benefits curves and convex shape of cost curves and how they relate to the typical ordering of intervention strategies in sustainability.
Subscribe to:
Post Comments (Atom)
-
In this lecture, we go into detail about the graphical solution to maximizing the intertemporal social welfare function (i.e., balancing pre...
-
This lecture session is meant to provide a student-driven, cumulative review of topics that could serve as a study guide for the upcoming fi...
-
This lecture focuses on microeconomic modeling of market failures resulting from negative and positive externalities (with the aim of applyi...
No comments:
Post a Comment