Positive Externalities
Completion requirements
Watch this video on how additional production can generate positive
externalities. When dealing with positive externalities, the government
can enhance efficiency by implementing specific measures to reduce
deadweight loss. As explained in the video, a tax credit for planting
trees could offset the positive externality.
Source: Khan Academy, https://youtu.be/AG1lR-yairI
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License.
Last modified: Thursday, 16 November 2023, 12:19 PM