06Externalities in Action Environmental and Health Externalities（课件）- 《财政与金融》同步教学（人民大学·第五版）

6 6.1 The Role of Economics in Environmental Regulation: The Case of Acid Rain 6.2 Global Warming 6.3 The Economics of Smoking 6.4 The Economics of Other Addictive Behaviors 6.5 Conclusion Externalities in Action: Environmental and Health Externalities 1 of 44 1 6.1 Acid rain is a classic negative production externality. Acid rain: Rain that is unusually acidic due to contamination by emissions of sulfur dioxide (SO2) and nitrogen oxide (NOx). Two-thirds of SO2 emissions come from coal-fired power plants, mostly located in the Ohio River Valley. The Role of Economics in Environmental Regulation: The Case of Acid Rain of 44 C H A P T E R 6 ■ E X T E R N A L I T I E S I N A C T I O N : E N V I R O N M E N T A L A N D H E A L T H E X T E R N A L I T I E S 2 6.1 The negative effects of acid rain include: Environmental damage to both water and land ecosystems. Property damage to painted surfaces (autos) and metal or stone exteriors (statuary). Reduced visibility caused by suspended acidic chemicals (smog). Adverse health outcomes (lung or heart diseases). The Damage of Acid Rain of 44 C H A P T E R 6 ■ E X T E R N A L I T I E S I N A C T I O N : E N V I R O N M E N T A L A N D H E A L T H E X T E R N A L I T I E S 3 6.1 To combat acid rain, Congress passed the 1970 Clean Air Act. 1970 Clean Air Act (CAA): Landmark federal legislation that first regulated acid rain–causing emissions by setting maximum standards for atmospheric concentrations of various substances, including SO2. Regulations only affected new plants, however, encouraging use of older, dirtier plants. History of Acid Rain Regulation of 44 C H A P T E R 6 ■ E X T E R N A L I T I E S I N A C T I O N : E N V I R O N M E N T A L A N D H E A L T H E X T E R N A L I T I E S 4 6.1 How does acid rain (or SO2) affect health? The typical approach taken in this literature is to relate adult mortality in a geographical area to the level of particulates (such as SO2) in the air. Th