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POPULATION GROWTH AND THE BENEFITS FROM OPTIMALLY PRICED EXTERNALITIES*
Author(s) -
CLARKE HARRY R.,
NG YEWKWANG
Publication year - 1995
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/j.1467-8454.1995.tb00020.x
Subject(s) - externality , revenue , economics , microeconomics , population growth , value (mathematics) , tax revenue , population , natural resource , natural resource economics , public economics , finance , ecology , demography , machine learning , sociology , computer science , biology
"In this article we show that, considering only economic effects, even if population growth, by natural increase or immigration, increases congestion, pollution, and other forms of external costs, that provided pre-existing citizens own the resources giving rise to the externalities, and provided they efficiently price usage of such, that existing citizens must, in net average terms, be better off with population growth than without it. In simple terms the increased revenues they gain from efficient pricing at increased demand levels will be strictly greater than the monetary value of the increased external costs together with the higher tax costs they incur as consumers of the resources."