Flashcards
Umweltökonomik 2
Cards in this deck (6)
- 1Which liability laws there are?Strict liability = Strong polluter-pay-principel (PPP)
Means every externality costs
Negligence = weak PPP
There is a right to pollute to a certain level, after then, you got to pay! - 2What assumptions we have?Complete Information
under negligence the "care level" is set at optimum
Damage cost = Compensation Payments
Externalties - 3Where is the Optimum to pollute?Where MAC (Marginal Abatement Costs)
=
MEC (Marginal External Costs) - 4What are the diffrences between damage and compensation payments?Compensation higher/lower than damage
(problem to identify polluters and impact)
Problem of monetization of environmental damage (if it was for free in the past, it is hard to demand money for it)
Wrong judgment of consequences by polluter
Limit of liability
Wrong care level under negligence - 5Discounting of Compensation Payments under "Strict Liability Laws"The more discount, the larger be the deviation from the optimum.
- 6Discounting of compensation payments under "Law of Negligence"Only if damage is sufficiently discounted, there will be a deviation fom optimum. So it is LESS sensitive to discounting.
But polluter will tend to discount more, because the proff of evidence is difficult.
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- Flashcards on Umweltökonomik 2, created by Gustav Glanz on 10/01/2019.
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- Gustav Glanz
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