Caithness Energy, a big company from New York, is building wind farms in eastern Oregon. Prior to construction the company offers residents $ 5,000 each to sign a waiver saying they will not complain about excessive noise from the turning wind turbines [Yardley, 2010]. Analyze this offer in terms of the Coase Theorem.
Answer to relevant QuestionsDenmark recently instituted a “ fat tax,” which charges about $ 3 per kilogram of saturated fat in food. One commentator criticized the tax as inefficient, because it taxes an input to health rather than a health outcome ...The private marginal benefit for commodity X is given by 10 – X , where X is the number of units consumed. The private marginal cost of producing X is constant at $ 5. For each unit of X produced, an external cost of $ 2 ...Some members of the city council in Washington, DC, recently proposed requiring every taxi to have a medallion, which is essentially a permit to drive a cab. Under the proposal, the number of medallions was fewer than the ...Officials at California University of Pennsylvania recently argued that wealthier students should pay higher tuition, and the revenue should be used to offer more scholarships to poorer students [Ansberry, 2010]. This idea ...A satirical essay recently advocated forcing taxi companies to switch to rickshaws, which are small two- wheeled taxis pulled by a runner or bicyclist. The authors note that this would create new jobs in the form of drivers ...
Post your question