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Welfare analysis regulation

Part I – (this draws on welfare analysis regulation (Ch 4) to improve the argument made in the Rough Draft as well as describe an unintended consequence)

Consider regulations in the US kidney market and the negative aspects of the government intervention. In addition to improving your paper based on the feedback you received, add to your previous discussion of the US kidney market using what you have learned about DWL and welfare analysis; specifically discuss efficiency concerns as a result of the intervention. You may have discussed DWL in the rough draft but you should elaborate on that discussion and really focus on what causes the DWL and in what ways is the loss generated, exactly who is impacted and how; give specific examples. Make sure you use multiple different economic terms from key concepts in chapter 4 throughout this part of the paper.

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Sample Answer

 

 

The Dark Side of Good Intentions: Deadweight Loss and the US Kidney Market

The current state of the kidney market in the United States, with its ban on the sale of human organs, presents a complex ethical and economic dilemma. While the ban undoubtedly stems from a desire to prevent exploitation of vulnerable individuals, it also creates unintended consequences, particularly in the form of deadweight loss (DWL).

Deadweight Loss Explained:

DWL refers to the net loss of economic welfare in a market due to government intervention, such as a ban. In the context of the kidney market, the ban creates a situation where some potential donors and recipients are unable to transact, even though both parties would benefit from the exchange.

Full Answer Section

 

 

  • Fewer Transportation Needs:Modular units are prefabricated and delivered to the site, reducing the number of deliveries of raw materials needed for traditional brick construction.

Brick Construction’s Drawbacks:

  • High Embodied Carbon:Brick production itself can be energy-intensive, leading to higher embodied carbon emissions trapped within the material.
  • Waste Generation:On-site brick construction often generates significant waste due to cutting and unusable leftover materials.
  • Transportation:Bricks are heavy and require multiple deliveries of raw materials to the construction site, increasing transportation emissions.

Additional Considerations:

  • Material Source:The environmental impact of both methods can be influenced by the source and sustainability practices used for materials like steel (modular) and clay (brick).
  • Building Design:Energy-efficient building design principles can significantly improve the overall environmental footprint regardless of construction method.
  • End-of-Life Considerations:The ability to deconstruct and reuse modular units or recycle brick materials at the end of a building’s lifespan can further reduce environmental impact.

Overall:

Modular construction generally has a lower environmental impact than traditional brick construction due to reduced waste, potentially lower energy consumption during construction, and fewer transportation needs. However, the specific environmental profile can vary depending on factors like material sourcing, building design, and end-of-life practices.

 

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