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Chapter Thirteen:

Chapter Thirteen:. The Economics of the Environment. The Theory of Externalities. Figure 13.1: The Negative Externalities of T-Shirt Production. Figure 13.2: Internalizing a Negative Externality with a Pigovian Tax. Figure 13.3: Analysis of a Positive Externality.

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Chapter Thirteen:

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  1. Chapter Thirteen: The Economics of the Environment

  2. The Theory of Externalities

  3. Figure 13.1: The Negative Externalities of T-Shirt Production

  4. Figure 13.2: Internalizing a Negative Externality with a Pigovian Tax

  5. Figure 13.3: Analysis of a Positive Externality

  6. Figure 13.4: Environmental Taxes in Select Developed Countries, as a Percent of Total Tax Revenue, 2010 Source: Organisation for Economic Co-operation and Development, OECD/EEA database on instruments used for environmental policy and natural resources management. Updated April 13, 2012.

  7. Environmental Policies in Practice

  8. Figure 13.5: A Firm’s Response to a Pollution Tax

  9. Figure 13.6: Gasoline Prices and Consumption, Select Countries, 2010 Sources: GIZ, International Fuel Prices 2010/2011, 7th ed. Federal Ministry for Economic Cooperation and Development (Germany), 2011; U.S. Energy Information Administration online database.

  10. Appendix: Formal Analysis of Negative Externalities

  11. Figure 13.7: Welfare Analysis of a Negative Externality, without a Pigovian Tax

  12. Figure 13.8: Welfare Analysis of a Negative Externality, with a Pigovian Tax

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