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Essay代寫案例-Pollution and its role in market failure
本文是一篇Essay代寫范文,題目為Pollution and its role in market failure,本文有關于市場失靈的兩個主要類型。其一稱之為外部因素或溢出成本因素,這是由于生產了不合理數量的商品與服務而導致的,該可能起因于一個貿易流程,并影響一些沒有直接參與這個流程的人。另一個類型稱為公共物品,‘公共物品通常是每個公民可以使用的,要排除任何一個公民是不可能的,即便是他們沒有購買此商品,或是進行消費。社會經濟效益在造福人類方面發揮著越來越重要的作用。在資源有限的情況下,生產者被激勵合理配置資源,以確保最高的效率,這是由價格和邊際成本的平等決定的。這樣才能有效地管理商品和服務的生產和消費。根據經濟學理論,市場在保持生產和消費平衡中起著至關重要的作用,市場供求曲線決定著社會的最優產出。然而,由于市場供求關系曲線的不完善,導致經濟資源配置不合理,市場失靈就發生了。在沒有任何扭曲的情況下,競爭均衡是有效的。通過使用“市場失靈”一詞來涵蓋市場均衡效率低下的所有情況”(大衛,2005:266)。 Economic effectiveness for society has been playing an increasingly important role in benefiting our human beings. Given the limited resources, producers are being motivated to allocate the resources properly to ensure highest efficiency, which is determined by the equality of price and marginal cost. Then the production and consumption of goods and services can be managed in an efficient way. According to economic theory, the market has been playing a vital role in keeping the balance of production and consumption, the market demand and supply curves lead to the optimum output for the society. However, market failure occurs when economic resources are not allocated effectively caused by the market demand and supply curves working imperfectly. ‘In the absence of any distortions, competitive equilibrium is efficient. By using the term market failure to cover all the circumstances in which market equilibrium is inefficient’ (David, 2005:266). There are two primary types of market failure. One is called externalities or spillovers, which is caused by producing incorrect amount of goods and services, it may result from a trading process which affects some individuals not directly involved in that process. The other one is called public goods, ‘public goods are generally available to all, such that it is difficult if not impossible to exclude any person, even if they have not paid for the good, from consuming it. Markets often fail to encourage private firms from supplying such good’ (Eleanor, 2005:223). It should be noted here, when it comes to public good, it includes a significant number of consumers sharing the goods or services for free, they are called the free-rider. In economy, externalities are divided into two parts, positive externalities and negative externalities. The former one is achieved by adding benefit to the third parties or the whole community without compensation. The latter one is incurred by inflicting the cost on the third party without payment to it. In the real world, pollution is served as an example of market failure. On April 19th 2010, a chemical firm in the southeast of England poured waste into a lake, polluting the lake. The chemical manufacturer favored maximizing profit as opposed to protecting the environment. It resulted in fewer fish production of anglers. ‘Without a “market” for pollution, that firm could pollute the lake without cost. The self-interest leads it to contaminate the lake regardless of the cost inflicts on anglers’ (David, 2005:267). The optimum amount of output is wrongly produced due to the difference between the private supplier’s comparison of benefits and marginal costs and society’s comparison of marginal benefits and costs. Therefore, the optimum output of chemical firm should be reconsidered. To help analyze this case, we use the following diagram. S: stands for the marginal private cost curve; S1: stands for the marginal social cost curve; D: shows the firm’s marginal revenue curve According to the diagram, in this case pollution, negative externalities occurs. At the output Qe , equilibrium output is achieved by the firm, at which the marginal private cost equals the price of the firm’s output. For the overall community, the social optimum output is at the output Qo, indicating the marginal social cost equals the marginal social benefit of chemicals, the difference between output Qe and Qo leads to the market failure for the chemical firm. In an attempt to achieve highest efficiency, the output level should be reduced from Qe to Qo , at which the marginal social cost equals the marginal social benefit. It’s the optimum social output. In this situation, the resources of chemical firm were overallocated, leading to market failure, as seen in the diagram. Solutions to market failure have two basic forms, including specific taxes and legislation. In our case, if the chemical output is very low, there is no need to control the pollution. Whereas higher amount of disposed waste cannot be diluted by the lake, in order to control the amount of pollutant discharged waste by the chemical firm, the government should design policy such as specific tax charges to motivate the firm be aware of the charging fees due to pollution. ‘The task of the environmental economists is to design policy instruments such as taxes and charges, for instance making it economically sensible for households to sort their waste to an optimal extent’ (Frank, 1999:408) . In our case, as seen in the graph below, a tax equal to T per unit will increase the cost of the chemical firm, which will shift the SS curve to StSt curve. Therefore, the output level will be reduced from Qe to Qo , also it is an equilibrium output for the society as a whole. This means the resources are perfectly allocated. S: stands for the marginal private cost curve; St: stands for the marginal social cost curve; D: shows the firm’s marginal revenue curve Additionally, the government can also pass legislation to solve market failure. For instance, if the chemical factory will be fined by the government if they dispose wastewater into the lake, they will spontaneously construct more wastewater treatment equipment for discharges. Hence, the firm’s cost increases from S curve to St curve. The output has been brought back to the optimum social output Qo, so the negative externality was eliminated now. In recent years, the importance of treatment capacity can never be underestimated, emissions from the manufacturing industry decreased dramatically, especially in some urban areas where factory are built densely along the river bank. The purpose for charges primarily includes the wish for a fairer allocation of resources. Consequently, the efficient allocation of resources could be achieved and the market failure was eliminated. Nowadays, a high level of environment pollution contributes to the significant market failure since the use of free common resources, such as air or water. In the long run, of course, the debts of the common resources will be shifted to our whole society. It might be noted that, our government must strike a balance between protecting the environment and developing the economy. We must take responsibility to protect the environment. However, the cost of protection has to be taken into consideration when developing economy. ‘We should use the cost-benefit analysis to determine the optimum extent to which anti-pollution programs should be pursued’ (John, 2007:218) . In the old-style market excludes the common properties with lower price or no price. In the United States, the market has been extended to a new level for some heavy industries, which allows us to attach a reasonable price tag on each common property. Because of trading of pollution rights in our new market, we don’t need the government intervention any more when we reduce the pollution, the efficiency of the market based incentives for polluters to reduce pollution to an optimal extent can never been underestimated. The manufacturers might be motivated to develop new cost-efficient ways or do research on new technologies to help protect the environment. Hence, negative externalities could be eliminated and the cost of reducing pollution may stay at relatively low level in the long run. 舊式市場中,不包括價格較低或沒有價格的普通樓盤。在美國,一些重工業的市場已經擴大到一個新的水平,這使得我們可以在每一個共同財產上貼上合理的價格標簽。由于污染權在我國新市場上的交易,我們在減少污染的過程中不再需要政府的干預,以市場為基礎的激勵機制對污染企業在最佳程度上減少污染的效率是不可小覷的。制造商可能會被鼓勵開發新的成本效益高的方法,或者研究新技術來幫助保護環境。因此,從長遠來看,可以消除負外部性,減少污染的成本可能保持在相對較低的水平。 以上就是Essay代寫范文全部內容,歡迎閱讀,范文格式和內容僅供留學生參考學習,不得抄襲。如果有Essay代寫需要,請聯系網站客服。


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