Negative Externalities and the Coase Theorem

Understanding of how well defined property rights can help solve market failure where negative externalities in the form of pollution exist. The diagram is NOT REQUIRED at A Level.

[@ahsank.]

Coming back to Dal from university is always a good feeling

[@lorro7585]

Come back to you as a university economics student. Dal you top geezer.

[@hivan04]

YESSIR

[@carolinalocarno9102]

I usually never comment videos, but this is definitely a great one! Thanks

[@nidaali1637]

Very precise and to the point as always 👌

[@spawn90761]

you can do the diagram based on the river user having property rights by using the y axis to sketch the area under the diagram to include the loss and area gain etc

[@qufluna]

You should add Marginal private cost n Social costs so we can see it clearly.

[@fazertopi1876]

You're my saviour

[@jaakkooksa5374]

In this example the farmer owns the property rights to the river. What if the government owns those property rights? Then we are back at regulation again.

[@fazertopi1876]

Brilliant stuff

[@j4kob204]

Great video :)

[@priti6655]

Thank you sir nicely explain ❤️❤️❤️❤️

[@deepu9319]

Awesome

[@tims4283]

Assuming the river is a public good- given the free-rider problem that could occur amongst the river users, who is going to pay the farmer with a property right to take production at Q*. Should the government not intervene and impose tax on pollution (i.e. farmer, assuming no property right was granted in the first place) such that t = MEC (Q*) = MB (Q*)?

[@JocelynDavies-wc7hh]

In this situation the river user would be the public? I don't understand why they would want to pay for it?...

[@1watsonwatson]

Government failure is far more common than market failure

[@vladimirmisin1876]

marginal costs and marginal benefits insteeeeeead , please