Approaches to solving the problem of externalities: Advantages and disadvantages

Abstract

Externalities result in inefficient allocation of resources and can cause significant social costs. Economic theory has developed a wide range of instruments for internalizing external costs. The aim of this paper is to emphasize characteristics of different regulations, and to depict their advantages and drawbacks in dealing with environmental externalities.

Eksterni efekti dovode do neefikasne alokacije resursa i mogu uzrokovati značajne društvene troškove. Ekonomska teorija je iznedrila više pristupa koji se mogu primeniti u cilju internalizacije eksternih troškova. Cilj ovog rada je da istakne specifičnosti različitih propisa, kao i da ukaže na njihove mane i prednosti u rešavanju problema eksternih efekata u sferi životne sredine.