Economics, Econometrics and Finance
8 years ago

Study reveals correcting positive externalities doesn't always lead to positive welfare

RePEc: Research Papers in Economics
On Positive Externality
Ekaterina Vorotnikova, Andrew Schmitz

Paper Summary

The article explores how positive externalities can affect businesses when the cost to society is different from the cost to the business. They looked at a shellfish farm on the West Coast and found that fixing positive externalities doesn't always make things better, but it did for this farm.

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