Related goods approaches - indirect substitute approach, Public Economics

Related Goods Approaches - Indirect Substitute Approach

In many cases it is difficult to find a direct substitute, which enters into formal market, for the environmental action to be evaluated. In such cases we combine the production function approach with the direct substitute approach. First, we find a direct substitute of the environmental function. Second, we find out the value of this direct substitute through the production function approach discussed earlier.

Thus we find out the value of the environmental function indirectly through the production function approach. The indirect substitute approach is based on stringent assumptions about the substitutability between the two goods, the role of the substitute good as an input in the production of the output, and the value of the output.

 

 

 

Posted Date: 12/18/2012 5:32:43 AM | Location : United States







Related Discussions:- Related goods approaches - indirect substitute approach, Assignment Help, Ask Question on Related goods approaches - indirect substitute approach, Get Answer, Expert's Help, Related goods approaches - indirect substitute approach Discussions

Write discussion on Related goods approaches - indirect substitute approach
Your posts are moderated
Related Questions
A dam is proposed on a stretch of wild river, a river that is currently used for recreation. The dam will generate electricity. The dam will have a useful life of 50 years, after w

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

The international monetary fund and the World Bank are the main lending financial institutions that give assistance to developing nations in the restoration of their economy. Wh

Public Finance was always dealing with intervention through fiscal instruments, including federal relationships between different tiers of governments and later on it subsumed Publ

general equilibrium analysis of taxation in shven and whalley (1984) article

Quantitative policy process depends on a portfolio of tools that have been drawn from a variety of disciplines besides discretionary political decision. Over the past two decades

Sustainability, more recently referred to as ‘sustainable development', came from the idea of integrating economic development and environmental protection. The concept is based on

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Suppose there is certain social norm. Its enactment into statutory law lowers people's private cost of its enforcement because it creates the possibility that violation of norm wi

QUESTION 1 (i) The implementation of e-Government presents a number of challenges to both the Government and citizens. Discuss these challenges using appropriate examples.