Welfare Effect of Environmental Quota

This Demonstration displays the welfare loss associated with a binding or nonbinding quota due to negative environmental externalities resulting from production of a good. You can vary the level of environmental damage associated with production. The model differentiates between the deadweight loss resulting from overproduction and that resulting from reduced market activity as a result of the quota.


  • [Snapshot]
  • [Snapshot]
  • [Snapshot]
    • Share:

Embed Interactive Demonstration New!

Just copy and paste this snippet of JavaScript code into your website or blog to put the live Demonstration on your site. More details »

Files require Wolfram CDF Player or Mathematica.