TERM 1
Benefit-Cost Analysis
DEFINITION 1
Underlies much of economic theory. Used to evaluate the
associated gains and losses to society
TERM 2
Incremental
Benefits
DEFINITION 2
The reduction(change) in health, ecological, and property
damages associated with an environmental policy initiative
(The difference from the new level of tsb after policy is
implemented minus the baseline of tsb before the policy is
implemented)
TERM 3
Understanding MSB
DEFINITION 3
At each level of abatement, MSB is measured as the vertical
distance from the horizontal axis up to the demand curve
TERM 4
Understanding the TSB
DEFINITION 4
an aggregation of these vertical distances of the msb
TERM 5
user value
DEFINITION 5
benefit derived from physical use of or access to an
environmental good
