Selected implications of negative externalities – on the example of the Polish energy sector
PBN-AR
Instytucja
Wydział Zarządzania (Akademia Górniczo-Hutnicza im. Stanisława Staszica w Krakowie)
Informacje podstawowe
Główny język publikacji
EN
Czasopismo
Ekonomia Menedżerska
ISSN
1898-1143
EISSN
2353-3617
Wydawca
Akademia Górniczo-Hutnicza im. Stanisława Staszica (Kraków). Wydział Zarządzania
Rok publikacji
2014
Numer zeszytu
2
Strony od-do
189--201
Numer tomu
15
Link do pełnego tekstu
Identyfikator DOI
Liczba arkuszy
0.9
Autorzy
(liczba autorów: 2)
Pozostali autorzy
+ 1
Słowa kluczowe
EN
market failure
effective allocation of resources
negative and positive externalities
modelling of the Polish energy sector
Open access
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Razem z publikacją
Streszczenia
Język
EN
Treść
The aim of this paper is to present selected issues of the effective allocation of resources and its function in optimal decision-making processes. The authors focus on the economic consequences of market failure in the case of external effects - both positive and negative. It has been characterized from the theoretical perspective by illustrating the economic implications of this situation for producers (producers surplus), consumers (consumer surplus), and the environment (external costs and benefits). This paper shines a light on effective levels of production, the subsidies to producers (in the case of positive externalities), or correcting tax (in the case of negative externalities). Moreover, the decision rules that are used in the cost-benefit analysis (a method supporting the decision-making process undertaken by both private entities and public authorities) are given. There are specific examples of its application in order to achieve allocative efficiency. An exception of its use is to achieve cost efficiency, which does not ensure that a project, program, or policy is socially optimal and desirable. The second part of this paper includes theoretical implications of market failure. The results of the authors' mathematical model that is used to optimize long-term energy sector development are presented. The importance of the presented results is that they reflect development of the Polish energy sector, both from the private and public viewpoint, taking into account the adverse effects caused by the emission of gaseous pollutants. Consumer and producer surpluses were the bases to estimate costs and benefits of change in the social welfare. It has been proven that the use of private welfare criterion is incorrect. The internalization of external costs (which means including them in decision-making criterion, significantly - i.e., 24%) increases the level of social welfare achieved on the scale of the whole Polish energy sector.
Cechy publikacji
original article
peer-reviewed
Inne
System-identifier
idp:087492
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