Explain the term externality in an economic context in your own words. Provide an example of a positive externality which does not involve carbon.

SUSTAINABLE COMMUNITIES

Explain the term externality in an economic context in your own words.

Provide an example of a positive externality which does not involve carbon. It should be well thought out and provide enough detail for the reader to fully understand your example (2-3 sentences).

Provide an example of a negative externality which does not involve carbon. It should be well thought out and provide enough detail for the reader to fully understand your example (2-3 sentences).

Explain how negative externalities can contribute to a lack of sustainability?

Describe four externalities associated with carbon? Provide at least one example of a positive externality and at least one example of a negative externality.

Describe 2 additional situations where it might make sense to use a Pigouvian tax.

Describe 3 challenges associated with implementing a Pigouvian tax. Consider criticisms of Pigouvian taxes that you came across in the readings.

Explain whether or not you think that a Pigouvian carbon tax is a good option for internalizing externalities associated with carbon. Consider economic, social and environmental factors. Are you in favor of a Pigouvian tax in other situations?

Choose a carbon tax rate that you feel is appropriate (in dollars per ton) and justify that value.

Describe two alternatives to a carbon tax for mitigating the impacts of externalities associated with carbon. Explain why you think these options could be effective?

Explain the term externality in an economic context in your own words. Provide an example of a positive externality which does not involve carbon.

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