Environmental management (1 Viewer)

[kat_in_a_hat88]

I got this practice question for short answers, its worth 2 marks...anyone care to please help...

Distinguish between the private and social costs associated with the logging of the rainforests.​

Cheers

 

[sunjet]

This is from last years hsc, it was 3 marks.

Private costs refers to internalised costs, such as labour, capital costs.
Social costs are externalised and society 'pays' for them such as pollution to air, future generations etc.

 

[monique66]

Yeah, i agree...

This is what i'd say:
Private costs include the costs to firms in areas of production and the price that consumers pay for the product that they ultimatly purchase. However, it can be seen that the untimate social cost will inevitable higher because of the negative externality created by the logging. For example, the degradation of the environment will reduce integenerational equity and may create pollution, costs which are borne by the public and are not included in the priovate costs of firms in the logging of rainforests...etc

 

[sunjet]

yea we did it in class today, wrote practicly a page -- too lazy to write it out.

@damnation: you had your economics trials yet?

 

[monique66]

yeah, today...