External effects of production of gaseous industrial waste
Journal Title: Науковий журнал "Економічний вісник Донбасу" - Year 2018, Vol 3, Issue 53
Abstract
The article considers the effect of external effects and the problems of their regulation. The concept of external effects is most effective in solving the problems of ecological and economic efficiency of mechanisms for ensuring public welfare. The key directions of the internationalization of externalities are based on the ideas of A. Pigou and R. Coase. It is established that the theories proposed by A. Pigou and R. Coase are incapable of dealing with the consequences of global externalities. Given the absence of an objective model for estimating losses caused by the effects of global externalities, R. Coase's market equilibrium and A. Pigu's state regulation are not able to resolve the issue of an objective resource allocation between producers and recipients of external effects. However, certain approaches to overcoming the consequences of global externalities can be used to minimize such effects. On the basis of a comparison of existing concepts a classification of external effects according to the nature of the impact is proposed. It has been found that gaseous industrial waste - carbon monoxide (CO2), sulfur dioxide (SO2) and nitrogen oxide (NO2) - have a significant impact on the economy. It is noted that in the US technical and technological solutions for capture, transportation and storage (or use) are implemented, which can only provide some improvement in the state of the environment in a particular area. It is noted that the technical solution to this problem is rare, as an entrepreneur can not assess the practical benefits of reducing the concentration of carbon monoxide in the air, and the society to identify the specific degree of harm caused to each of the producers of CO2. The concept of overcoming externalities is proposed, where the main trunk lines are the promotion of low-emission production; state financial support for projects for the collection of gaseous substances and the use of tools to promote the reduction of gaseous emissions. These approaches are the first steps in the transition to low-emission types of production.
Authors and Affiliations
O. Serdiuk
Keywords
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