The Nature of Environmental Ezternality and the Theory of Externality and the Theory of Externality Process(part2) : (2)the Multiplier

摘要

The Neo-Classical economists have recognized environmental problems as one of the typical examples of externality problems. For them, it is necessary to internalize the externality by either governmental intervention or re-arrangement of property rights. However, the fact that environmental problems are full of variety, from neighborhood noise to global warming, suggests us that it is inappropriate to treat them as a mere externality. In the part 1 of this article, the nature of environmental externality is identified as physical relationships between human acts and the environment, which contains uncontrollable aspects in the nature. In part 2,idea of externality process will be developed, which provides a framework in which we can examine appropriateness of an environmental policy choice.