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Population growth and the benefits from optimally priced externalities.

H R Clarke, Ng Y-k

    Australian Economic Papers
    |June 1, 1995
    PubMed
    Summary
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    Population growth, even with increased external costs, benefits existing citizens economically. Efficient pricing of resources ensures revenue gains outweigh costs, leading to net economic improvement for the population.

    Area of Science:

    • Environmental Economics
    • Public Economics
    • Resource Economics

    Background:

    • Population growth can exacerbate externalities like congestion and pollution.
    • Resource ownership and pricing mechanisms are critical in mitigating negative externalities.

    Purpose of the Study:

    • To analyze the net economic impact of population growth on existing citizens.
    • To determine if efficient resource pricing can offset externalities caused by population increase.

    Main Methods:

    • Economic modeling of externalities and resource pricing.
    • Analysis of revenue generation versus cost imposition under population growth.

    Main Results:

    • Population growth, under efficient resource pricing, leads to net economic benefits for existing citizens.
    Keywords:
    Cost Benefit AnalysisDemographic FactorsDemographic ImpactEconomic FactorsEvaluationLongterm EffectsPopulationPopulation DynamicsPopulation GrowthQuantitative EvaluationTime FactorsWorld

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  • Increased revenues from higher demand for resources exceed the costs of externalities and consumer taxes.

    • Conclusions:

    • Efficiently pricing resources is key to ensuring population growth is economically advantageous for the current population.
    • Economic policies that internalize externalities can transform population growth from a potential burden into an economic benefit.