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A Framework to Think About Pollution: Externalities, Pollution Taxes, and Cap and Trade
Debaere, Peter Technical Note GEM-0104 / Published April 26, 2011 Collection: Darden School of Business
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It is an understatement to say that environmental challenges are attracting attention. Sustainability tops the list of challenges for the 21st century. There is no consensus about how to address these challenges in a politically feasible way. This note offers a conceptual framework that firms and consumers can use to start thinking about the economic challenges ahead and how economic policies are likely to affect the environment within which they operate.




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  • Overview

    It is an understatement to say that environmental challenges are attracting attention. Sustainability tops the list of challenges for the 21st century. There is no consensus about how to address these challenges in a politically feasible way. This note offers a conceptual framework that firms and consumers can use to start thinking about the economic challenges ahead and how economic policies are likely to affect the environment within which they operate.

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