Equity workshop: Social equity matters in Payments for Ecosystem Services IIED
Social equity matters in Payments for Ecosystem Services.
A presentation by Unai Pascual, Basque Centre for Climate Change.
This presentation was given at the Expert Workshop on Equity, Justice and Well-being in Ecosystem Governance, held at the International Institute for Environment and Development (IIED) in London, March, 2015.
Tackle climate change with tried and true persuasion techniquesRomeu Gaspar
The greater good is a worthy motive to address climate change, but it’s not a particularly effective persuasion technique. Routine, reward and social proof work far better.
Modelo Keynesiano IS LM
La Curva IS:
a) La curva IS es la función de las combinaciones de tasas de interés y niveles de ingreso
.
La Curva LM:
a) La curva LM es la función de las combinaciones de tasas de interés y nivel de ingreso.
In Keynesian Economics equilibrium is reached at a point where Ad equals AS. On the Other hand for equilibrium Consumption must equal Investment given the fact that S = I. The rete of interest which is the major determinant of Investment is determined in Money Market. It is therefore essential that at equilibrium all these markets should be in equilibrium. IS LM explains simultaneous equilibrium in all the markets.
Equity workshop: Social equity matters in Payments for Ecosystem Services IIED
Social equity matters in Payments for Ecosystem Services.
A presentation by Unai Pascual, Basque Centre for Climate Change.
This presentation was given at the Expert Workshop on Equity, Justice and Well-being in Ecosystem Governance, held at the International Institute for Environment and Development (IIED) in London, March, 2015.
Tackle climate change with tried and true persuasion techniquesRomeu Gaspar
The greater good is a worthy motive to address climate change, but it’s not a particularly effective persuasion technique. Routine, reward and social proof work far better.
Modelo Keynesiano IS LM
La Curva IS:
a) La curva IS es la función de las combinaciones de tasas de interés y niveles de ingreso
.
La Curva LM:
a) La curva LM es la función de las combinaciones de tasas de interés y nivel de ingreso.
In Keynesian Economics equilibrium is reached at a point where Ad equals AS. On the Other hand for equilibrium Consumption must equal Investment given the fact that S = I. The rete of interest which is the major determinant of Investment is determined in Money Market. It is therefore essential that at equilibrium all these markets should be in equilibrium. IS LM explains simultaneous equilibrium in all the markets.
The business case for environmental sustainability: embedding long-term strat...Ken Dooley
ABSTRACT Current environmental demands, such as the need to meet governmental climate change adaptation targets or to avoid future resource scarcities have created a business opportunity for firms that eschew business as usual and adopt ambitious environmentally focused systemic innovations. This article aims to present a clear business case for corporate environmental sustainability in order to increase investments in this area. The core focus is on the tangible economic benefits that can be realised through environmental strategies such as risk reduction and efficiency gains. The aim is to show that sustainability can be an opportunity rather than an obligation and that not only can environmental and economic performance be optimised simultaneously but that economic performance can be optimised through environmental strategies. It is expected that this approach shall increase competitive advantage while supporting climate change mitigation. The article also highlights the current drivers that provide motivation for environmental performance improvement such as global trends towards resource efficiency and the exposure to long term environmental risks. Sustainability is a multidimensional subject that involves a diverse range of operational processes and it is argued that a greater portion of sustainability resources should be invested in ambitious environmentally focused systemic innovations. This will enable sustainability to be strategically integrated into the core business practices. Embedded sustainability is the term used to describe a high level of sustainability integration.
This is the subject of Business Ethics and Corporate Social Responsi.pdfvicky309441
This is the subject of Business Ethics and Corporate Social Responsibility, can you write around
200-500 words of reflection based on those theories from the article above, here are some written
suggestions you can apply, thank you very much! The Triple Bottom Line: What Is It and How
Does It Work? Timothy F. SLAPER, Ph.D.: Director of Economic Analysis, Indiana Business
Research Center, Indiana University Kelley School of Business TANYA J. HALl: Economic
Research Analyst, Indiana Business Research Center, Indiana University Kelley School of
Business ustainability has been an performance: social, environmental putting a dollar value on
wetlands often mentioned goal of and financial. This differs from or endangered species on
strictly businesses, nonprofits and traditional reporting frameworks philosophical grounds.
Others governments in the past decade, yet as it includes ecological (or question the method of
finding measuring the degree to which an environmental) and social measures the right price for
lost wetlands or organization is being sustainable or that can be difficult to assign endangered
species. pursuing sustainable growth can be appropriate means of measurement. Another
solution would be to difficult. The TBL dimensions are also calculate the TBL in terms of an
John Elkington strove to measure commonly called the three Ps: people, index. In this way, one
eliminates sustainability during the mid-1990s planet and profits. We will refer to the
incompatible units issue and, by encompassing a new framework these as the 3Ps. as long as
there is a universally to measure performance in Well before Elkington introduced accepted
accounting method, allows corporate America. 1 This accounting the sustainability concept as
"triple for comparisons between entities, framework, called the triple bottom line,"
environmentalists e.g., comparing performance betwee bottom line (TBL), went beyond the
wrestled with measures of, and companies, cities, development traditional measures of profits,
return frameworks for, sustainability. projects or some other benchmark. on investment, and
shareholder Academic disciplines organized An example of an index that value to include
environmental and around sustainability have multiplied compares a county versus the social
dimensions. By focusing on over the last 30 years. People inside nation's performance for a
variety of comprehensive investment results - and outside academia who have components is the
Indiana Business that is, with respect to performance studied and practiced sustainability
Research Center's Innovation Index. along the interrelated dimensions would agree with the
general Themains some subjectivity of profits, people and the planet__ definition of Andrew
Savitz for even when using an index however. triple bottom line reporting can TBL. The TBL
"captures the essence For example, how are the index be an important tool to support of
sustainability by measuring the components weighted? Would each .
Mitigating Risk in Transportation Costs Appendix 4A provides a .docxraju957290
Mitigating Risk in Transportation Costs
Appendix 4A provides a detailed discussion of cost concepts in transportation, including accounting, economic and social costs. Review these costs, and in a three- to four-page paper in APA format, be sure to address the following:
•Discuss how accounting, economic, and social costs can be used in transportation to mitigate risks associated with these costs.
•Analyze how the company’s focus can impact these costs and impact risks.
•Provide at least one recommendation for each cost area that could mitigate the risks of those costs.
Your paper must be three to four pages in length (not including the title and reference pages) and must be formatted according to APA style as outlined in the approved APA style guide. You must cite at least three scholarly sources in addition to the textbook.
APPENDIX 4A Cost Concepts
Accounting Cost
The simplest concept or measure of cost is what has sometimes been labeled accounting cost, or even more simply as money cost. These are the so-called bookkeeping costs of a company and include all cash outlays of the firm. This particular concept of cost is not difficult to grasp. The most difficult problem with accounting costs is their allocation among the various products or services of a company.
If the owner of a motor carrier, for example, was interested in determining the cost associated with moving a particular truckload of traffic, all the cost of fuel, oil, and the driver's wages associated with the movement could be quickly determined. It might also be possible to determine how much wear and tear would occur on the vehicle during the trip. However, the portion of the president's salary, the terminal expenses, and the advertising expense should be included in the price. These costs should be included in part, but how much should be included is frequently a perplexing question. The computation becomes even more complex when a small shipment is combined with other small shipments in one truckload.
Some allocation would then be necessary for the fuel expense and the driver's wages.
Economic Cost
A second concept of cost is economic cost, which is different from accounting cost. The economic definition of cost is associated with the alternative cost doctrine or the opportunity cost doctrine. Costs of production, as defined by economists, are futuristic and are the values of the alternative products that could have been produced with the resources used in production.
Therefore, the costs of resources are their values in their best alternative uses. To secure the service or use of resources, such as labor or capital, a company must pay an amount at least equal to what the resource could obtain in its best alternative use. Implicit in this definition of cost is the principle that if a resource has no alternative use, then its cost in economic terms is zero.
The futuristic aspect of economic costs has special relevance in transportation because, once inves ...
VFM seeks to enable decision makers know whether a program is/was worth doing, bearing in mind its costs, performance and alternative use of resources.
Mitigating Risk in Transportation Costs Appendix 4A provides a d.docxadelaidefarmer322
Mitigating Risk in Transportation Costs
Appendix 4A provides a detailed discussion of cost concepts in transportation, including accounting, economic and social costs. Review these costs, and in a three- to four-page paper in APA format, be sure to address the following:
Discuss how accounting, economic, and social costs can be used in transportation to mitigate risks associated with these costs.
Analyze how the company’s focus can impact these costs and impact risks.
Provide at least one recommendation for each cost area that could mitigate the risks of those costs.
APPENDIX 4A
Cost ConceptsAccounting CostThe simplest concept or measure of cost is what has sometimes been labeled accounting cost, or even more simply as money cost. These are the so-called bookkeeping costs of a company and include all cash outlays of the firm. This particular concept of cost is not difficult to grasp. The most difficult problem with accounting costs is their allocation among the various products or services of a company. If the owner of a motor carrier, for example, was interested in determining the cost associated with moving a particular truckload of traffic, all the cost of fuel, oil, and the driver's wages associated with the movement could be quickly determined. It might also be possible to determine how much wear and tear would occur on the vehicle during the trip. However, the portion of the president's salary, the terminal expenses, and the advertising expense should be included in the price. These costs should be included in part, but how much should be included is frequently a perplexing question. The computation becomes even more complex when a small shipment is combined with other small shipments in one truckload. Some allocation would then be necessary for the fuel expense and the driver's wages.Economic CostA second concept of cost is economic cost, which is different from accounting cost. The economic definition of cost is associated with the alternative cost doctrine or the opportunity cost doctrine. Costs of production, as defined by economists, are futuristic and are the values of the alternative products that could have been produced with the resources used in production. Therefore, the costs of resources are their values in their best alternative uses. To secure the service or use of resources, such as labor or capital, a company must pay an amount at least equal to what the resource could obtain in its best alternative use. Implicit in this definition of cost is the principle that if a resource has no alternative use, then its cost in economic terms is zero. The futuristic aspect of economic costs has special relevance in transportation because, once investment has been made, one should not be concerned with recovering what are sometimes referred to as sunk costs.1 Resources in some industries are so durable that they can be regarded as virtually everlasting. Therefore, if no replacement is anticipated, and there is no alterna.
The business case for environmental sustainability: embedding long-term strat...Ken Dooley
ABSTRACT Current environmental demands, such as the need to meet governmental climate change adaptation targets or to avoid future resource scarcities have created a business opportunity for firms that eschew business as usual and adopt ambitious environmentally focused systemic innovations. This article aims to present a clear business case for corporate environmental sustainability in order to increase investments in this area. The core focus is on the tangible economic benefits that can be realised through environmental strategies such as risk reduction and efficiency gains. The aim is to show that sustainability can be an opportunity rather than an obligation and that not only can environmental and economic performance be optimised simultaneously but that economic performance can be optimised through environmental strategies. It is expected that this approach shall increase competitive advantage while supporting climate change mitigation. The article also highlights the current drivers that provide motivation for environmental performance improvement such as global trends towards resource efficiency and the exposure to long term environmental risks. Sustainability is a multidimensional subject that involves a diverse range of operational processes and it is argued that a greater portion of sustainability resources should be invested in ambitious environmentally focused systemic innovations. This will enable sustainability to be strategically integrated into the core business practices. Embedded sustainability is the term used to describe a high level of sustainability integration.
This is the subject of Business Ethics and Corporate Social Responsi.pdfvicky309441
This is the subject of Business Ethics and Corporate Social Responsibility, can you write around
200-500 words of reflection based on those theories from the article above, here are some written
suggestions you can apply, thank you very much! The Triple Bottom Line: What Is It and How
Does It Work? Timothy F. SLAPER, Ph.D.: Director of Economic Analysis, Indiana Business
Research Center, Indiana University Kelley School of Business TANYA J. HALl: Economic
Research Analyst, Indiana Business Research Center, Indiana University Kelley School of
Business ustainability has been an performance: social, environmental putting a dollar value on
wetlands often mentioned goal of and financial. This differs from or endangered species on
strictly businesses, nonprofits and traditional reporting frameworks philosophical grounds.
Others governments in the past decade, yet as it includes ecological (or question the method of
finding measuring the degree to which an environmental) and social measures the right price for
lost wetlands or organization is being sustainable or that can be difficult to assign endangered
species. pursuing sustainable growth can be appropriate means of measurement. Another
solution would be to difficult. The TBL dimensions are also calculate the TBL in terms of an
John Elkington strove to measure commonly called the three Ps: people, index. In this way, one
eliminates sustainability during the mid-1990s planet and profits. We will refer to the
incompatible units issue and, by encompassing a new framework these as the 3Ps. as long as
there is a universally to measure performance in Well before Elkington introduced accepted
accounting method, allows corporate America. 1 This accounting the sustainability concept as
"triple for comparisons between entities, framework, called the triple bottom line,"
environmentalists e.g., comparing performance betwee bottom line (TBL), went beyond the
wrestled with measures of, and companies, cities, development traditional measures of profits,
return frameworks for, sustainability. projects or some other benchmark. on investment, and
shareholder Academic disciplines organized An example of an index that value to include
environmental and around sustainability have multiplied compares a county versus the social
dimensions. By focusing on over the last 30 years. People inside nation's performance for a
variety of comprehensive investment results - and outside academia who have components is the
Indiana Business that is, with respect to performance studied and practiced sustainability
Research Center's Innovation Index. along the interrelated dimensions would agree with the
general Themains some subjectivity of profits, people and the planet__ definition of Andrew
Savitz for even when using an index however. triple bottom line reporting can TBL. The TBL
"captures the essence For example, how are the index be an important tool to support of
sustainability by measuring the components weighted? Would each .
Mitigating Risk in Transportation Costs Appendix 4A provides a .docxraju957290
Mitigating Risk in Transportation Costs
Appendix 4A provides a detailed discussion of cost concepts in transportation, including accounting, economic and social costs. Review these costs, and in a three- to four-page paper in APA format, be sure to address the following:
•Discuss how accounting, economic, and social costs can be used in transportation to mitigate risks associated with these costs.
•Analyze how the company’s focus can impact these costs and impact risks.
•Provide at least one recommendation for each cost area that could mitigate the risks of those costs.
Your paper must be three to four pages in length (not including the title and reference pages) and must be formatted according to APA style as outlined in the approved APA style guide. You must cite at least three scholarly sources in addition to the textbook.
APPENDIX 4A Cost Concepts
Accounting Cost
The simplest concept or measure of cost is what has sometimes been labeled accounting cost, or even more simply as money cost. These are the so-called bookkeeping costs of a company and include all cash outlays of the firm. This particular concept of cost is not difficult to grasp. The most difficult problem with accounting costs is their allocation among the various products or services of a company.
If the owner of a motor carrier, for example, was interested in determining the cost associated with moving a particular truckload of traffic, all the cost of fuel, oil, and the driver's wages associated with the movement could be quickly determined. It might also be possible to determine how much wear and tear would occur on the vehicle during the trip. However, the portion of the president's salary, the terminal expenses, and the advertising expense should be included in the price. These costs should be included in part, but how much should be included is frequently a perplexing question. The computation becomes even more complex when a small shipment is combined with other small shipments in one truckload.
Some allocation would then be necessary for the fuel expense and the driver's wages.
Economic Cost
A second concept of cost is economic cost, which is different from accounting cost. The economic definition of cost is associated with the alternative cost doctrine or the opportunity cost doctrine. Costs of production, as defined by economists, are futuristic and are the values of the alternative products that could have been produced with the resources used in production.
Therefore, the costs of resources are their values in their best alternative uses. To secure the service or use of resources, such as labor or capital, a company must pay an amount at least equal to what the resource could obtain in its best alternative use. Implicit in this definition of cost is the principle that if a resource has no alternative use, then its cost in economic terms is zero.
The futuristic aspect of economic costs has special relevance in transportation because, once inves ...
VFM seeks to enable decision makers know whether a program is/was worth doing, bearing in mind its costs, performance and alternative use of resources.
Mitigating Risk in Transportation Costs Appendix 4A provides a d.docxadelaidefarmer322
Mitigating Risk in Transportation Costs
Appendix 4A provides a detailed discussion of cost concepts in transportation, including accounting, economic and social costs. Review these costs, and in a three- to four-page paper in APA format, be sure to address the following:
Discuss how accounting, economic, and social costs can be used in transportation to mitigate risks associated with these costs.
Analyze how the company’s focus can impact these costs and impact risks.
Provide at least one recommendation for each cost area that could mitigate the risks of those costs.
APPENDIX 4A
Cost ConceptsAccounting CostThe simplest concept or measure of cost is what has sometimes been labeled accounting cost, or even more simply as money cost. These are the so-called bookkeeping costs of a company and include all cash outlays of the firm. This particular concept of cost is not difficult to grasp. The most difficult problem with accounting costs is their allocation among the various products or services of a company. If the owner of a motor carrier, for example, was interested in determining the cost associated with moving a particular truckload of traffic, all the cost of fuel, oil, and the driver's wages associated with the movement could be quickly determined. It might also be possible to determine how much wear and tear would occur on the vehicle during the trip. However, the portion of the president's salary, the terminal expenses, and the advertising expense should be included in the price. These costs should be included in part, but how much should be included is frequently a perplexing question. The computation becomes even more complex when a small shipment is combined with other small shipments in one truckload. Some allocation would then be necessary for the fuel expense and the driver's wages.Economic CostA second concept of cost is economic cost, which is different from accounting cost. The economic definition of cost is associated with the alternative cost doctrine or the opportunity cost doctrine. Costs of production, as defined by economists, are futuristic and are the values of the alternative products that could have been produced with the resources used in production. Therefore, the costs of resources are their values in their best alternative uses. To secure the service or use of resources, such as labor or capital, a company must pay an amount at least equal to what the resource could obtain in its best alternative use. Implicit in this definition of cost is the principle that if a resource has no alternative use, then its cost in economic terms is zero. The futuristic aspect of economic costs has special relevance in transportation because, once investment has been made, one should not be concerned with recovering what are sometimes referred to as sunk costs.1 Resources in some industries are so durable that they can be regarded as virtually everlasting. Therefore, if no replacement is anticipated, and there is no alterna.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
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2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the what'sapp information for my personal pi vendor.
+12349014282
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
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Discussant Paper: Extending the IS LM Curve to Include an "Environmental Equilibrium" Curve
1. I. What question is the author trying to answer?
In Extending the IS-LM Model to Include an ‘Environmental Equilibrium’
Curve, Philip A. Lawn explores how to incorporate environmental constraints into
the IS- LM (Investment Saving- Liquidity preference Money supply) curves in a way
that does not require a decrease in sustainable output. Lawn introduces Heyes’
Environmental Equilibrium (EE) curve into the IS-LM model as a solution to the
necessity of environmental constraints to be taken into account within
macroeconomic models used for policy analysis. The EE curve cannot withstand in
an economy alone- policy tools must be used to ensure the restriction of “the
incoming resource flow to the maximum sustainable rate” as well as to facilitate
efficient allocation of natural resources. Heyes’ approach concludes that expanding
monetary policy (the Federal Reserve’s command of the nominal interest rate) will
result in an increase in output, or expanding fiscal policy will result in a decrease in
output. Lawn’s approach is to provide solutions to the question of how to
incorporate environmental constraints into the IS-LM curve without causing a
decrease in output, as Heyes’ approach does with an expansion of fiscal policy.
II. What solutions are offered?
Lawn first reviews the equations for the IS, LM and EE curves, giving insight
into what kind of variables the EE curve is dependent upon. The IS and LM curves
are dependent upon output, and the ex ante real interest rate described by the
Fisher equation, which is ex ante real interest rate=nominal interest rate-expected
inflation. At equilibrium, IS=LM=EE, with the IS-LM equilibrium describing an
economy where the money markets and goods are in equilibrium. The
2. environmental equilibrium is where the economy is producing at maximum output
and is using the cleanest technology possible with polluters/users of a resource
bearing the entire cost of pollution. Above this point, the economy is exhausting its
long-term resources, and below this point, the economy is producing below
sustainable output potential.
Lawn’s approach to a sustainable equilibrium between the IS-LM-EE curves
(where output is at its potential and natural capital is not being exhausted) is
through the introduction of tradable resource use permits and assurance bonds.
Tradable resource use permits are used in Lawn’s approach to “restrict the
incoming resource flow to the maximum sustainable rate”, while assurance bonds
(polluter or user pays for all costs of pollution before using the resource) are to
facilitate efficient allocation of resources. Rather than either an increase or decrease
of output depending on the type of policy expansion and shifting the IS and LM
curves as concluded by Heyes, Lawn’s implementation of assurance bonds and
tradable resource user permits allows the EE curve to shift to a sustainable
equilibrium. This results in either an increase in output, or for output to remain
constant, a favorable approach to Heyes’ approach.
Tradable resource permits are a way to limit the amount of resources being
extracted, necessitated by Lawn’s explanation of how a price ought to signal the
scarcity of a resource now and in future generations. However, people discount the
future value of resources, which results in a price that does not accurately signal the
scarcity of the resource in the future. The second policy tool needed is to allocate
3. resources efficiently. Because the permits will be auctioned off originally, funds may
be collected to “facilitate efficient allocation”.
III. Conclusion and Review
Lawn concludes by urging once more the importance of incorporating this EE
curve into our IS-LM model in a way that does not favor the movement of the IS and
LM curves, as Heyes’ approach does. Lawn suggests that moving the EE curve is a
more favorable approach. This is done by implementing tradable resource permits
and assurance bonds so that output will only increase or stay constant with
monetary or fiscal policy expansions, while Heyes’ approach will decrease output if
using fiscal policy expansion.
IV. Criticisms
Lawn introduces several new concepts in his conclusion such as a Balance
Payments (BP) curve as well as suggests looking at “international transactions”,
which I found to be a bit confusing and this muddled the clarity of his conclusion.
Furthermore Lawn ignores the significance of long-run output in his explanation of
the environmental equilibrium, only mentioning that prices do not accurately reflect
the depletion of a resource stock for future generations. The IS-LM model is based
on a level of output that is a rate that signifies either an economy that is above
potential output or below potential output. Potential output is determined by the
output that the economy would produce if all inputs were utilized at their long-run
sustainable levels. Lawn does not include a review of the environmental equilibrium
curve’s relevance to long-run sustainable levels other than explaining that we need a
4. policy tool for the price of resources to reflect the scarcity to future generations
(tradable resource use permits).
V. Suggestions
Lawn introduces the idea that two separate policy tools are needed to fully
implement the EE curve into the IS-LM model early on in the paper. These tools are
based on the problem that incoming resources must be restricted to achieve the
maximum sustainable rate, and that these resources need to be allocated efficiently.
Rather than focusing on a mere efficient allocation of resources, Lawn ought to
include an efficient and equal allocation of resources. This model is meant to capture
spillover costs of pollution (that are borne by those other than polluters) through
the user or polluter fully internalizing the pollution cost. Without including an equal
allocation of resources, the largest firms with the most wealth will be able to buy up
all of the resource use permits. This could result in a skewed distribution of
resources, though it may be the most efficient.
This leads us to Lawn’s policy tool suggestion to facilitate efficient allocation-
assurance bonds. As mentioned earlier, assurance bonds are meant to make the firm
pay for the costs of pollution before they are even able to buy a resource use permit.
This is a problem because the methods used to determine the costs of pollution (and
other waste) can be very inaccurate, ranging from mere surveys to abstract
concepts that can be based on opinion. My main suggestion for Lawn is that he
include some sort of sensitivity variable in his EE curve that incorporates how
reliable the methods used to evaluate the costs of pollution are, so to be more
accurate with assurance bonds and to minimize spillover.
5. Sources Cited
Lawn, Philip A. “Extending the IS-LM Model to Include an Environmental
Equilibrium.” Australian Economic Papers Volume 42. Issue 1 (March 2003): p. 118-
134