Ee Ch 21

Front 1

Six policy design principals

Back 1

1. For each individual policy, need individual policy instrument
2. Policy should be right amount of macro control with minimum sacrifice to micro freedom
3. leave margin of error for environ
4. Use existing structures and implement policy from where we are
5. Policy must adapt to change
6. Area of policy must be in same area of the causes and effects of the problem

Front 2

Proper sequence of policy

Back 2

Scale
Distribution
efficient allocation

Front 3

Source v. Sink as throughput control

Back 3

Sinks are owned, sources are not

Front 4

Price v. quantity as control instrument

Back 4

Quantity is better, environment cares about quantity, price fluctuation can change faster than ecosystems

Front 5

Circularity of internalizing scale or distribution of prices

Back 5

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Front 6

Property Rights

Back 6

Property Rule -
person is free to interfere with another or free to prevent interference (on his property)
Liability rule - when one person is free to interfere with another or prevent interference the must compensate for it.
Inalienability rule- if person is entitled to something or absence of something no one can take it away.