ROPERTY ECONOMCS YEAR 2 PROJECT 3 “The most serious external costs in the modern

ROPERTY ECONOMCS YEAR 2 PROJECT 3 “The most serious external costs in the modern world are surely those associated with actions that damage the environment – air pollution, water pollution, habitat destruction. Protection of the environment has become a major role of government in all advanced nations” Discuss this statement in the context of the economics of climate change. Your discussion will include: The concept of internalising negative externalities and why market economies produce too much pollution and the socially optimum quantity of pollution Policies towards Pollution – environmental standards; emission taxes (Pigovian); tradeable emissions permits (Cap and Trade) WORD COUNT: 1,500 WORDS

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