Theoretical and Applied Economics
No. 7 / 2006 (502)
Pollution and Property: Is Relevant Market Failure Theory?
Universitatea „Politehnica” Bucuresti
Abstract. An externality exists whenever a transaction creates a cost or a benefit for a party not directly involved. Pollution, such as smoke emitted into the air or sewage poured into the water is an externality. In this paper I analyze the differences between Neo-classical and Austrian School of Economics regarding externalities and the best way to fight it. Neo-classicals are concerned about efficiency and they propose some forms of government intervention in order to alleviate pollution: taxes and tradable permits. Austrians seek to remove interpersonal conflict related to pollution and show that although taxes and permits could theoretically work, they fail to eliminate conflicts among people.
Contents
Arguments for the Study of Institutionalism and Institutional Reform in Romania
Organizational Transition and Change Resistance
Economic Politics, between Individual Interest and Public Interest
Corporate Governance, between Classicism and Modernism
Dilemmas of Modernity in Change
The Economy Governing During Globalization Era
Romania. The Pillars for its Sustainable Development
Using Standard-Sole Cost Method for Performance Gestion Accounting and Calculation Cost in the Machine Building Industry
The Prevailing of the Human Nature in the Economics of Adam Smith
Growth and Efficiency at the Macroeconomic Level
Pollution and Property: Is Relevant Market Failure Theory?
A Mental Value Perspective in Risk Decision Theory