Pigovian tax: A tax enacted. to correct the effects of a negative externality
Marginal abatement cost: The cost expressed in terms of the last unit of pollution not emmited (abated)
Property rights: The exclusive right of an individual, group or organization to determine how a ressource is used.
Public interest: Making decision based on a principle where the maximum benefit is gained by the largest number of people at minimum cost
Public choice theory: The analysis of governmental behaviour, and the behaviour of individuals who interact with government
Rational ignorance effect: The tendency of a voter to not seek out information to make an informed choice in elections.
Special interest effect: Where benefits to a minority special interest group are outweighed by costs imposed on the majority
Logrolling: The agreement between politicians to exchange support on an issue.
Rent seeking: Where individuals or groups take actions to redirect resources to generate income (rents) for themselves or the group.
Privatisation: The transfer of publicly owned assets to private sector ownership.
Cronyism: A situation where the allocation of ressources in the market is determined in part by political decision-making and favours rather than by economic forces.
