Question

Please provide a very brief example of the following terms. I have the definitions, but want a real-world example to relate them to. Thanks. Internalization process whereby external environmental or other costs are borne by the producers or the consumers who generate them, usually through the imposition of pollution or consumption taxes Public Good - an entity that provides benefits to all individuals simultaneously and whose enjoyment by one person in no way diminishes that of another. (environmental conservation) Public Bad - an entity that imposes costs on groups of individuals simultaneously. (environmental pollution, deforestation) Privately Owned Resources -the owner of a scarce resource has a finite volume of the resource to sell and knows that by saving a portion of it for future sales he or she can charge a higher price today.

Answer 1

a) Internalization: Most of the European country now have a Carbon Tax. These countries are UK, Denmark, Ireland, Germany, Finland, Sweden, Italy etc. A carbon tax internalizes the damage done to the environment the more carbon they use the more tax they have to pay to the government.

b) Defense services, Roads, and Railways are all example of Pubic goods.

c) Waste Dumping is an example of Public bad it causes a problem for everyone. Other examples are pollution from industries and vehicles.

d) A private house or apartments, Privately owned land.