WE all know the negative externalities associated with road vehicles, but here from the BBC is something new
http://news.bbc.co.uk/1/hi/uk/7759400.stm
a) What are the reduced negative externalities associated with this van?
b) What negative externalities remain?
c) Using a diagram, explain how a subsidy from the govt will encourage consumption of these vans
d) Why might the govt be reluctant to subsidise such vans?
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