MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
2nd Edition
ISBN: 9780134519517
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 2P
A friend in your environmental economics study group suggests that taxes on pollution are ineffective because they do not eliminate all pollution. Based on the ideas from this chapter, explain what is wrong with this argument. Should the goal of any policy be to eliminate all pollution? If not, what should be the goal?
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MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
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- Economists Kenneth Chay and Michael Greenstone found that in the two years following the passage of the Clean Air Act of 1970, the sharp reduction in air pollution also led to a decline in infant deaths. Although this and other studies provide compelling evidence of the link between pollution and infant health, it is not clear that reductions from the much lower levels of ambient pollution today would have the same effect. Which of the following reasons could explain this? A. Today, the level of pollution is much higher. Therefore, it will take a much larger reduction in air pollution to reap benefits similar to those in 1970. B. When levels of pollution are high, the marginal benefit of reducing pollution also is high. It follows therefore that the benefit of reducing air pollution in 1970 would be much higher than the benefit from a proportional reduction in air pollution today when the level of pollution is much lower. C. When levels of pollution are…arrow_forwardExplain why zero pollution should not be the goal for a society.arrow_forwardFirst, is it possible to have zero pollution? Next, even if it is possible, would we want to achieve zero pollution? Lastly, do you think there is too much pollution, and if so why?arrow_forward
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