Building a Green-Belt – Assignment Example
The paper "Building a Green-Belt" is an exceptional example of an assignment on environmental studies.
A local power plant is found to be emitting gases and particulates in the process of producing power. The production of power is no doubt beneficial to society, but harmful emissions also have a negative impact on the same. In economic terms, this perverseness arising out of any production process is known as a negative externality. In order to make the society a suitable place to live, it is necessary to take some steps to correct any such negativity. Hence, this is something that an ideal policy-maker must take care of.
The steps that the policy-maker might adopt ideally in this case, in order to reduce the number of harmful emissions from the power plant are -
1. Build a green-belt around the plant premises.
2. Impose a tax on the power plant for polluting the society.
3. Subsidize the society to compensate for their loss.
Benefits and Costs of the Steps
Building a green-belt might be an ideal way to compensate for the pollution. But, since the process is an expensive one, it won't be feasible to implement unless the production involves a necessary item. Again, the imposition of taxes might not be an ideal way for a necessary good since it discourages the production of the same. On the other hand, subsidizing the general public might be able to compensate them financially for the time being, but, the harm that befalls their health is permanent in nature and cannot be corrected in any way.
Level of Pollution
Even though policies are undertaken, there must be some restrictions on the amount of pollution. An ideal way to decide the optimal amount of pollution is to find out the point of intersection of the marginal benefits and marginal costs of the production of the commodity on the society.
level of pollution
This method is by far the best-known method to decide the optimal level of pollution since it takes into account both the benefits of production and the corresponding cost of a negative externality (Campbell, Stanley & Campbell, 2005).