JEL code Q
Agricultural, natural resource and environmental
How should we price pollution and manage nature?
Emerged 1920
Arthur Pigou's The Economics of Welfare separated private from social costs and argued that taxes and subsidies could close the gap, the basis of pricing pollution.
SourceHistory of Economic Thought website: Arthur C. Pigou (opens in a new tab)
An example
Stern (2006) and Nordhaus disagreed on climate policy largely because they used very different discount rates for the future.