European Air Pollution Essay
Air Pollution social costs in the European Union: European Emissions Trading System as a Solution
Introduction
This essay argues how air pollution is a negative externality that has generated social costs to the European countries part of the European Union (EU) and how the European Emission Trading System has worked as a market-based policy to reduce greenhouse gasses emission. Following Gregory Manckiw definition of externality as “the uncompensated impact of one person’s action on the well-being of a bystander” this essay briefly explains:
• Why air pollution is a negative externality?
• The negative effects that air pollution has had in the European population.
• What are the variables used to measure the negative outcomes of pollution in Europe?
• How this negative outcomes are translated into costs for the European people.
Additionally it is described how the ETS policy works as a European Union solution to constrain greenhouse
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