As I don't teach you then of course you don't have to do this. Also I can give it to the AS group if it is too difficult.
Anyway here is the title:
"If we tax petrol, this does not efficiently internalise the externalities that are attributed to motor vehicle transport." Discuss.
This is to be HANDED IN TO ME by Monday.
Typed and printed out - minimum 1500 words.
7 comments:
I partly disagree with this statmement as i think that taxation is a helpful way of reducing externalities arising from using oil for motor vehicles
Yes, but if we raise the petrol prices the number of vehicles will be reduced which means being less productive than we used to be!
Yeah.But what about derived demand?)
Oh i meant joint demand!!!)))
yeah, joint demand.. but surely that if we raise the price for petrol, people will still have to buy it as it's inelastic demand for oil.. depends on how much we raise the price actually.
I agree
great discussion! thanx Elvi!
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