Author Question: Explain why a freeway under certain circumstances may not be easily classified as a pure public ... (Read 45 times)

Capo · **on:** Jun 29, 2018

Explain why a freeway under certain circumstances may not be easily classified as a pure public good.

What will be an ideal response?

Question 2

What is meant by direct regulation of pollution emissions? What is the problem with this method of pollution control?

What will be an ideal response?

wfdfwc23 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A pure public good is one in which there is no ability to exclude non-payers and bestow collective benefits. The use of a freeway during rush hour traffic may actually impose a cost on others that use the freeway by adding to everyone else's commute time. In addition, toll ways can and are installed to keep non-payers from enjoying the good.

Answer to Question 2

Direct regulation typically takes the form of uniform treatment of polluters. Direct regulations can include requiring all polluters to reduce pollution by a fixed amount or install similar pollution abatement equipment. Unlike market-based solutions to pollution control, direct regulation does not take into account differences in firms' costs of reducing pollution.As a result, the cost to society of pollution abatement may be larger than it needs to be.
A-head: ECONOMICS OF THE ENVIRONMENT
Concept: Direct regulation