18. Environment

This page outlines the syllabus of a new textbook: Environmental Economics. It reviews the traditional views on how people cheat each other with asymmetric information, moral hazard, addiction, embezzlement, and free riding. It then attacks the wrong measures of punishment, regulation, lobbying, taxation and trading of carbon or sins to cure pollution.

 

Market Failure

128: Lemons This video reveals the peculiarity of Akerlof’s lemon theory.
129: Moral Hazard I This video shows that it is impossible to bring back the two-dimensional theory from a one-dimensional function.
130: Moral Hazard II This video shows that the theory by Arnott and Stiglitz contains only one point.
131: Moral Hazard III This video disproves the moral hazard theory by Arnott and Stiglitz.
163: Addiction This video proves that Becker’s Addiction theory is indecisive.
164: Growth & Addiction This video tells the difference between growth and addiction theories.

Principal Agency Paradox

030: A Singular Indifference Curve This video defines singular indifference curve.
064: Agency Dilemma I This video proves that the manager would embezzle the whole pie, had he had his own indifference curve.
065: Agency Dilemma II This video proves that the manager might embezzle more than the whole pie, if embezzlement price could be made lower.
066: Agency Dilemma III This video proves that policing or outsourcing may ruin the bargaining problem at all.

Traditional Pollution Theories

147: Punishment Marginal Cost This video proves that punishment does not eliminate or reduce pollution.
003: Marginal Product is not Demand This video proves that marginal product or utility is not demand, and that marginal cost is not supply.
001: The Inconsistent Theory of the Firm This video works out the inconsistency problem of the neoclassical production theory.
148: Carbon Tax I This video proves that carbon tax is immoral and ineffective.
149: Carbon Tax II This video proves that pollution is not an input.
150: Carbon Trade This video proves that carbon trade does not eliminate carbon.
151: Pollution Tax This video proves that economists do not kill two birds with their pollution tax.
152: Tax Swap This video proves that tax swap is ridiculous.
153: Double Tax This video proves that pollution tax is a double blow to the industries.
154: Triple Tax This video proves that pollution tax encourages pollution.
141: Stupid Tax Theory This video shows that Pigou’s tax theory is extremely stupid.

 

Coase Theorem

155: Social Cost I This video proves that Coase has a better way to correct externality than Pigou.
156: Social Cost II This video proves that Coase is blackmailing the victim.
157: Social Cost III This video proves that Coase is blackmailing randomly.
158: Tax Incidence This video proves that Coase’ theorem is bullying and fundamentally wrong.

 

Regulation Theories

159: Regulation I This video proves that the only answer to tackle monopoly is perfect competition.
160: Regulation II This video proves that Peltzman’s regulation theory is ineffective.
161: Regulation III This video proves that Becker’s lobbying theory is searching in the wrong direction and finds no solution.
162: Regulation IV This video proves that Becker’s lobbying theory is wasteful.

Public Choice

047: Just Taxation I This video proves that marginal utility of cost is increasing, the reverse of the diminishing law of marginal utility.
048: Just Taxation II This video shows that Musgrave’s demand curve for public good lies below the zero-cost line.
049: Just Taxation III It is purely accidental for three lines to intersect at one point. This video shows how Clark has cheated us to obtain that point.
050: Just Taxation IV To add two parts together to obtain the designated sum is accidental. This video shows how Clark has cheated us to obtain that sum.
061: Auction Voting I This video shows that VL Smith’s forced price theory is Nash unsolved bargaining problem.
062: Auction Voting II This video shows how VL Smith destroys his own perfect pricing theory.
063: Auction Voting III This video shows how VL Smith encourages people to cheat. The result of the cheating is that no public project will ever be viable.