Not sure how to upload graphs, but i do have them on my computer.
Because of the increase in number of factories in china, the effects on third parties such as
This is a result from over allocation of resources towards the products which produce the pollution. Therefore this is a market failure of the Chinese market. A market failure occurs when firms do not allocate their resources most efficiently. The externalities of the production of products such as the computer chips mentioned in the article, cause serious harm to the Korean society even though they had nothing to do with the production of these Chinese products. The social cost of these storms befalls the Korean people. The entire daily life of many people is disturbed when the storms hit, schools are closed down and people are advised to stay indoors. The storms not only disrupt social lives, but they also kill approximately 165 people per year and cause illnesses in over 1, 8 million people. But there is still more damage, the Korea Environment institute estimates that the storms annually cause between 4.2 trillion won to 5.5 trillion won ($4.47 billion to $5.86 billion).
The computer chips and other polluting goods that are produced in
To decrease these social costs, the Chinese government is trying to contain desertification in
If the government taxes the firms more for pollution, this will make it more expensive for firms to pollute. Therefore in order to keep their costs low, they will pollute less, which in turn will decrease the toxicity of the storms. Leading to an immense decrease in the damage done by the storms to the health of people affected. The government however can also use other methods to control pollution output. They can sell trade able permits to firms to restrict their totall output. Permits can allow the company that owns it to pollute a certain amount. If the firm wants to pollute more, it can buy more permits. But also if they want to pollute less, they can sell their permits and make profits.
2 comments:
Hey Kaj,
The abstract and definitions thus far are quite good, however, i think you should include several graphs and analyze them. Also i think you should go into more detail about the taxing and illegalizing it, by writing about how it affects the firms when this is done, and how the external costs are decreased.
Kaj what you could do is to include something on tradeable pollution permits. Like say how the government would create permits that it would auction off to the firms. Otherwise its a good comentary but could use a few graphs
Post a Comment