We develop a unit commitment and economic dispatch model to estimate the operation costs and the air emissions externality costs attributable to new electric vehicle electricity demand under controlled vs uncontrolled charging schemes. We focus our analysis on the PJM Interconnection and use scenarios that characterize (1) the most recent power plant fleet for which sufficient data are availabl...

We study socially vs individually optimal life cycle allocations of consumption and health, when individual health care curbs own mortality but also has a spillover effect on other persons' survival. Such spillovers arise, for instance, when health care activity at aggregate level triggers improvements in treatment through learning-by-doing (positive externality) or a deterioration in the quali...

This paper addresses the problem of determining when coordination is beneficial. I describe a negative externality game containing a “worsening parameter and develop a framework linearizing this parameter for tractable examination. The worsening parameter can be classified according to “own effect” – changing the marginal utility of a players own action, “opponent effect” – altering the margina...

1. General theoretical considerations .................................................................................... 2 2. Self-related functions......................................................................................................... 3 1) Externality................................................................................................................................

The legal system is an expensive social institution, raising the question of whether the amount of litigation is socially appropriate. The thesis developed here is that it is not—because of fundamental differences between private and social incentives to use the legal system. These differences permeate litigation, affecting decisions about the bringing of suits, settlement versus trial, and tri...

The main aim of this paper is to determine the factors which enhance or temper firms’ private incentives to use communications technologies that are characterised by network externalities and allow firms to influence their rate of technological change or total factor productivity (TFP). As regards the impact of the network effect on TFP, we find that when the externality parameter is low, a sli...

This paper introduces some basic features of externality. Emphasis is given to the analysis of externality in the theory of international. It also discusses about the right government policies to correct externality. This paper and three accompanying papers are prepared for a monograph to be published by Tamkang University, Taiwan.

It should be obvious to even the casual observer that both markets and governments fail—neither comes close to achieving perfection. Externalities, both positive and negative, are the most common explanation for market failures. The undersupply of public goods, for example, is seen as a market failure, and is the direct result of a positive externality being generated when a person contributes ...