Our economic perspective of the pollution problem characterizes that problem as involving a conflict between the consumption of two broad classes of goods--physical (or produced) commodities and the direct consumption of 'clean environment'. After considering the relative merits of market and...

Public utilities which apply roughly uniform prices to all consumers often engage in cross-subsidisation - charging prices which are below cost for consumers in low population density areas but above cost for consumers in high density areas. The distributional and allocative implications of this...