Do we live in a nanny state +rehearsal external effects

• Economie
• Middelbare school
• havo
• Leerjaar 3

Todays lesson

Rehearsal external effects

Intervention by the government

External effects

A side-effect of production or consumption of a certain product

External effects Aviation:

• Noise
• Pollution--> CO2 emissions
• Effects the health of citizens near the airport (negatively)

Think of two other examples of external effects

Production of soy beans

Forests disappear in Southern America to create soyfields --> less absorption of CO2, less oxygen

A lot of water is required for the production of soybean

Erosion of land

biodiversity decreases, certain animals become extinct

Soy is needed as food for kettle --> meat industry causes a lot of CO2 emissions

What does the government do for us?
Longest list wins. Work in pairs

Groups

Placemat

1)Write down in the center:

Causes shortage of houses in the Netherlands

and solutions............. 

2) write down your answer in your own space on the placemat individually

3) turn the placemat around and read each other's comment

4) write down the comments you agree on in the center

Public goods

Goods produced by the government 

No company is willing to produce this

It cannot be sold in units

Dykes

You can not sell units of dyke protection

No company is willing to produce and eploit dyks

Street lighting

Quasi Public goods 

Goods produced by the government 

but companies could produce them as well

Because the product can be sold in units

Private schools also exist

You can bill parents for one year education

private hospitals also exist

You can send an invoice for treatment for diseases

The government intervenes

Excise duty = tax on products that cause negative external effects

Alcoholic drinks (diseases/ domestic violence --> health costs)

cigarettes (diseases --> health costs

Petrol (CO2 emissions, polution)

What would be the opposite of excise duty?

Subsidy

The government gives money to stimulate the consumption of certain products

to consumers or producers

Which products are subsidized? Or should be?

Subsidized products

School

Museum

Sport clubs

Public swimming pool

Solar panels

Heat pump