A tax that works by giving polluters a set of permits to emit a certain amount of pollution.
The name given to the set of regulatory policies that specifies an amount of pollution that can be legally taxed but prohibits any larger amount.
Imposed on producers per unit of pollution.
A tax imposed that is scheduled to decrease pollution over time.
They work by giving polluters a set of permits to emit a certain amount of pollution.
They are sold when some people receive benefits from the market of public goods without a need to pay their fair share of costs.
If a polluter can reduce pollution by more than the amount of the permit, then the permit can be sold to another.
If a polluter can reduce pollution by less than the amount of the permit, then the permit can be sold to another.
If a new producer is producing pollution, that producer can purchase a pollution permit from another.
It is a realistic policy goal.
In a literal sense, it would mean that people can't exhale carbon dioxide or create sewage.
In a literal sense, it would mean shutting down most of industry and economy.
The EPA enforces this policy any chance they can.
A formula, process, device, or item of information that gives a business an appropriate advantage over its competitors.
Direct government funding of appropriate research through universities, private research organizations, or firms.
When a seller cannot exclude those who did not appropriately pay from using the good.
The ability of a producer to reap the benefits of an investment or an invention.
Direct government funding of research through universities, private research organizations or firms.
Provision of tax credits to business for research and development.
Provision of labor unions to facilitate better communication in the workplace.
Provision of support for research and development through subsidizing the spread of information across organizations, across the country through such methods as helping to build the Internet, and across international boundaries.
A negative externality
A communistic benefit
A Prisoners' Dilemma
A positive externality
A free rider
It is a classic example of how the pursuit of rational self-interest can make all parties worse off.
The free rider problem is a version of this.
It is of great importance to economic analysis, because it illustrates a fundamental situation in which the the pursuit of self-interest by each individual party leads to outcomes that no one would mind if all players could find a way to cooperate.
Retailers and shoppers on Black Friday are good examples.
If the two prisoners cooperate and neither one confesses, they will be worse off.
If the two prisoners cooperate and neither one confesses, they will be better off.
When some people can receive benefits from public goods without a need to pay their fair share of the costs.
When goods with negative externalities have social costs higher than their private costs; they will be overproduced and be free.
When poverty increases at the same time that inequality is falling.
Personal recognition and shaming the producer into giving the good to the consumer for free.