Economic Theory and Acid Rain Reduction Introduction to the Issue Acid rain, in which the level of acidity in precipitation is higher than normal, is the result of minerals and gases in the atmosphere which attach themselves to water molecules. Research has show that acid rain is linked to chemical emissions caused by human activity and is compounded by the effects of global warming. What this means is that the more that there are chemicals released into the atmosphere around us, the greater the chance that precipitation will become acidic. This causes several problems for the ecosystem. Not only does rainwater become negatively affected, which can have a deleterious impact on our water systems as a whole, but trees can become stunted,...The end:
.....xternalities as a whole. Nonetheless, as pointed out by Collinge and Oates (1982), no plan for managing marginal social costs and damages will be able to be effective in the long run if they are not politically viable in the short run. For this reason, it is evident that political actors need to take the consequences of environmental damage to limited resources seriously in order to offset permanent challenges to society.References Atkinson, S. (1983). Marketable Pollution Permits and Acid Rain Externalities. The Canadian Journal of Economics, 16(4), 704-722. Collinge, R. & Oates, W. (1982). Efficiency in Pollution Control in the Short and Long Runs: A System of Rental Emission Permits. The Canadian Journal of Economics, 15(2), 346-354.