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These costs are expressed in terms the consumption commodity.
Clearly, the environmental costs are expressed in terms of a consumption commodity.8.8
The fact that maize is a consumption commodity or staple in Ghana supports this explanation.
I adopt the consumption commodity as numeraire, setting (p^s_2 = 1).
Of course, the waste treatment charges are reflected in the price of the consumption commodity.
Notice that environmental costs are expressed in terms of a consumption commodity.
Similar(35)
Next, let me show how disposal firms affect producers of consumption commodities.
Hence, the two types of consumption commodities are priced the same.
When one of the consumption commodities generates an externality, it was found how the well known optimal commodity tax formula of Ramsey is altered (Bovenberg and Frederick 1994).
Regarding consumption commodities, they are a Leontief combination of Armington products and they are taxed with VAT, such as households and government consumption pay value-added taxes.
Public consumption commodities, ( C_{text{g}} ), are valued at consumer prices, ( p_{text{c}} ), and all transfers received are valued with the consumer price index, ( p^{text{cpi}} ).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com