Wednesday, June 20, 2007

Unit 2: Externalities associated with driving

This article from the freakonomics site explains the externalities associated with driving and tries to put a price on them (in the American context)

http://www.freakonomics.com/blog/2007/06/18/hurray-for-high-gas-prices/

a) What are the negative externalities identified?
b) Why are they negative externalities?
c) To what extent would you support the conclusion that gas (ie petrol) taxes need to more than double?

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