we have no ability to see the defects in our life that affect us, define us, bias us, stop us, tantalise us, erode us, delight us...
Friday, March 23, 2007
theExternalitiesEffect
externality effects occur when consumption of a good reduces the utility of the other people. a good example to that could be smoking. the smoke in the close environment decreases the utility of a non-smoker, on the other hand, prohibition of smoking will reduce the utility of smoker.
economic studies claims ways for justice:
tax on tobacco products are normally added to government revenues.
what i suggest is non-smokers get a share from the tobacco tax revenue.
once a year, the non-smoker can go to revenues office and claim compensation with a medical report proving that she is a non-smoker. revenues office pays that claimer, as a compensation, a share from the revenue gathered from smokers.
the share that non-smokers win compensates the decrease in their utility that has arose because of the smoke on the environment that smokers produced...
as a non-smoker pollution makes me sad,
i hereby ask all the governments,
could you please pay me for i am unwillingly polluted by others???
this is the only just way of dealing with externality, economists argue
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