Why don’t they put solar panels on top of 18-wheelers?

[DNW]

Originally Posted by rdawson808

It's actually an externatility problem. There is a cost imposed on society that is not compensated by the perpetrators (sp?). Hence the marginal social cost is actually higher than the marginal private cost (the difference being the amount of the externality). Since people only respond to the costs they face, we see prices too low and quantities (of driving semi-trucks, say) too high.

Pollution allowance markets are fairly well advanced by this point. They are unfortunately completely inappropriate for the pollution coming from cars.

bob

You're right, the pricing problem an externality problem, which is part of the phenomenon of the tragedy of the commons. It's a tragedy, because of some actors, the unlimited access to a clean environment will ultimately destroys it. The actor's overpolluting cost is an externality on society. While his marginal revenue from polluting is greater than his private marginal cost, he will continue to pollute.

 

[rdawson808]

Originally Posted by DarkNWorn

You're right, the pricing problem an externality problem, which is part of the phenomenon of the tragedy of the commons. It's a tragedy, because of some actors, the unlimited access to a clean environment will ultimately destroys it. The actor's overpolluting cost is an externality on society. While his marginal revenue from polluting is greater than his private marginal cost, he will continue to pollute.

I tend to view the concept of an open access or common property resource problem as generally used only for natural resources (i.e. taking stuff out--fisheries, forestry, etc.), not problems of the enviornment (i.e. pollution). Though, of course, Hardin did cite pollution as an example. I like to separate them for my students also just to make them clearer (more clear?). I think it also jives better with common usage these days.

Yay, we're getting in an econ lesson!

As for the solar panels on trucks...probably just way too expensive. I thought it would fly with the BMW and how it controlled the AC on hot days, but I guess not. If I could afford it, I'd have my Civic retro-fitted with it. I hate the heat.

Does anyone know, are solar panels expensive to maintain? A friend recently told me that they took the panels off their roof on their new (old) home in Phoenix. When I read that I was floored. If they're already there, why not use them?



bob