Read this chapter to learn more about the different types of environmental solutions. Recall that a negative externality from producing is usually environmental pollution. Be sure to click through to read sections 12.1 to 12.6.
additional costs incurred by third parties outside the production process when a unit of output is produced
the full spectrum of animal and plant genetic material
laws that specify allowable quantities of pollution and that also may detail which pollution-control technologies must be used
a market exchange that affects a third party who is outside or "external" to the exchange; sometimes called a "spillover"
externalities that cross national borders and that cannot be resolved by a single nation acting alone
When the market on its own does not allocate resources efficiently in a way that balances social costs and benefits; externalities are one example of a market failure
a permit that allows a firm to emit a certain amount of pollution; firms with more permits than pollution can sell the remaining permits to other firms
a situation where a third party, outside the transaction, suffers from a market transaction by others
a tax imposed on the quantity of pollution that a firm emits; also called a pollution tax
a situation where a third party, outside the transaction, benefits from a market transaction by others
the legal rights of ownership on which others are not allowed to infringe without paying compensation
costs that include both the private costs incurred by firms and also additional costs incurred by third parties outside the production process, like costs of pollution