THE PHENOMENON OF “EXTERNALITIES” AS MARKET FAILURES

Анотація

At the beginning of the 21st century we experience the situation, which can be described as “the green boom” or “green madness”. This situation caused the opening of the new bigger discussion about the theme of externalities. Today, we live in a world that is strongly interconnected. This causes not only benefits, but also new difficulties. Externalities are part of the economy, life and society in general. Economically and politically, they are the result of market and government failure. Externality arises when one entity benefits, and other entities bear the cost without being compensated. In this case, negative externalities are considered. So the environment has recently been - and not only by the influence of externalities - brought to the forefront of the interest not only of ecologists but also of economists. Today we can even talk about environmental economics. More and more space, both in politics and in the media, is devoted to "green" issues. There is a transformation of ecological groups into a political party and through them ecology directly affects society and the economy. Various solutions of economic and ecological problems are being implemented. These solutions are mostly a combination of legislative, economic and technical measures. In the tax systems of many countries, so-called green taxes are being adjusted. This is in particular the imposition of excise duty on fossil fuels. These taxes are explained by efforts to reduce the consumption of non-renewable raw materials. Some countries are taking a tax incentive for ecological behavior. Whatever these measures are called, it is essentially about solving the problem of externalities through economic policy. Although some examples in the theoretical part might seem to be the problem of externalities as a problem for two or more individuals, it is necessary to realize that the problem of externalities is also a problem of the environment, especially in the case of transport. Although many authors (Coase) reject externalities as moral, this aspect can not be denied either. Therefore, the theoretical part of this work reacts, albeit marginally, to the moral dimension of externalities.

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