Using the Environment — An Allocation Problem

  • Horst Siebert


Technological externalities are nonmarket interdependencies among economic activities. Consider, for example, two production activities i and j. An externality exists if the output Q i in activity i depends on the output Qi or on the inputs R j of the other activity.


Public Good Allocation Problem Abatement Cost Negative Externality Environmental Medium 
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Copyright information

© Springer-Verlag Berlin Heidelberg 1998

Authors and Affiliations

  • Horst Siebert
    • 1
  1. 1.Kiel Institute of World EconomicsKielGermany

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