
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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