The cost-effectiveness equimarginal principle suggests that the techniques should be used such that the desired reduction is achieved and the cost of achieving the last unit of emissions reduction (in other words, the marginal control cost) should be the same for all sources. One of the reasons for the high rate of aluminum recycling and much lower rate of plastics recycling is the differential difficulty with which a high-quality product can be produced from scrap. In recognition of its unique ecosystem and extensive wildlife as well as its aboriginal archeological sites, much of the park has been placed on the U.N. World Heritage List. Depleted fisheries, which involve fish populations that have fallen so low as to threaten their viability as commercial fisheries, not only jeopardize oceanic biodiversity, but also pose a threat to both the individuals who make their living from the sea and the communities that depend on fishing to support their local economies. It generates income from interest on bonds, stock dividends, real estate rents, and capital gains from the sale of assets.7 To date, the legislature has used some of these annual earnings to provide dividends to every eligible Alaska resident, while using the rest to increase the size of the principal, thereby assuring that it is not eroded by inflation. When the number of parties involved in a dispute is large and the circumstances are common, we are tempted to correct the inefficiency by statutes or regulations rather than court decisions. This implies that the number of expected deaths would fall from 10 to 6.67 in the exposed population as a result of this policy. Some deaths are much worse for human welfare than others. Is this likely to result in the efficient amount of precaution against oil spills? We should not, in other words, chop down all the trees and use up all the oil, leaving future generations to fend for themselves. In subsequent chapters, we shall examine the various options policy-makers have not only to show how they can modify environmentally destructive behavior, but also to establish the degree to which they can promote efficiency. During other periods, much of the capacity remains underutilized. The study found that water use was 70 percent higher under the flat rate than the volume-based rates! Explain why the existence of a renewable energy credit market would lower the compliance costs for utilities forced to meet a renewable portfolio standard. Although the discussion thus far has focused on the quantity of water, quality is also a problem. As we discuss in a subsequent section of this chapter, markets for discarded electronics in industrializing countries may lack good enforcement mechanisms to ensure proper disposal of the hazardous components. They also suggest that to act as if one vision is correct, when it is not, could prove to be a costly error. 85 Willingness to Pay versus Willingness to Accept: Why So Different? 2 The monetary worth of the net benefit is the sum of two right triangles, and it equals (1/2)($5)(5) + (1/2)($2.50)(5) or $18.75. However, it is important to distinguish between the different types of privatization since they can have quite different consequences. All of these create rather different incentives for resource use. The price increase was due to strong worldwide demand coupled with restricted supply from Iraq because of the war. If an embargo hits, developing additional resources cannot happen immediately (multiple year time lags are common). Although no tidal power plants currently are operating in the United States, conditions are good for tidal power generation in both the Pacific Northwest and the Atlantic Northeast regions of the country. (2006) examine this issue in detail and provide some useful insights: ● ● ● Ethanol yields 25 percent more energy than the energy invested in its production, whereas biodiesel yields 93 percent more. Specific examples from the American Southwest illustrate how the political and economic institutions have coped with this form of impending scarcity. The moral of this story is that appropriately designed liability rules can also correct inefficiencies by forcing those who cause damage to bear the cost of that damage. Why or why not? The panel suggested that when practitioners follow these guidelines, they can produce estimates reliable enough to be the starting point of a judicial process of damage assessment, including lost passive-use values. Theory suggests that, and David Sunding, Newsha Ajami, Steve Hatchet, David Mitchell, here. Holds revenue down by charging a lower discount rate cost sources and illegal imports about their timing monthly! 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