econ rwe

supply shift right

more airline companies joining in UK so supply of air travel increases - number of firms

supply shift left

UK sugar tax - government intervention

cyclone in Madagascar damaged plantations, vanilla rose to $600 - climate shock

indirect tax

GST singapore 7% on all goods and services

price floor

UK minimum wage is 8 pounds per hour

UK price floor on CARBON - 2013

direct provision of merit goods

New Zealand national immunization schedules offers free vaccines

Negative externalities of consumption - cigarettes

UK smoking cost to NHS: 3-6 billion pounds per year

Singapore raised age from 18-19

Malaysia excise tax: 40% (2015)

negative externalities of production

China takes up 16/20 of top 20 cities with worst air pollution

• China subsidized 9800 to buyers of electric and hydrogen vehicles to combat air pollution

Ohio river, DuPont released hagovrmful chemicals up till 2013 that causes cancer

Common pool resources

Coral harvesting in Great Barrier Reef - gov. quota set at 200 tonnes but not sustainable

government regulation - laws

Singapore air pollution laws - vehicles must meet strict emission standards to be used

Carbon Tax

2019 Carbon tax in Canada discouraging burning of coal 

→ reduce greenhouse gas emission; incentivising individuals and business to reduce their carbon footprint look at the market for coal → goal = phase out by 2030

• Coal-fired power generation decreased by 66% nationally by 2021

• Carbon tax covers approx 70% of emissions 

government regulations - quota

Australia ITQ (individual transferable quota) for TAC (total allowable catch) to allow individuals to catch/lease/trade allocated amount

• hard to enforce; labour and investment

• protect habitat

government regulations - bans

Montreal Protocol (1987) banned CFCs for PRODUCTION and CONSUMPTION

• illegal emission: china 7000 tonnes

tradable permits - US ETS

47% reduction of emission 2005 —> 2023

subsidies - agricultural

Norway averages 62000 pounds per holding annually

• can compete with cheaper imports

• more affordable

• encourage production and consumption of merit goods

excise tax

Australia 72% of pack of cigarettes (duty and GST)