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Economic basis of External Costs in Copper Production

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  • Stojanovic, Dragica

Abstract

The paper is based on the fact that external costs occur in the production of copper, that they are the result of degradation and damage to the environment and, therefore, have become a real necessity. Ecological external effects influence environmental media (air, water, soil) that have characteristics of public goods. All costs incurred due to environmental pollution are not included in the price of copper. From the point of view of economic prospects, general solution for external costs is their internalization. The principle of internalisation of external costs includes the addition of external costs to the cost of individual pollutants. Through internalization, external negative effects of pollutants are converted into internal effects. Bearing in mind these facts, the aim of this paper is to demonstrate the interconnection between economic growth and environmental protection which together contribute to quality economic development.

Suggested Citation

  • Stojanovic, Dragica, 2013. "Economic basis of External Costs in Copper Production," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 59(3), September.
    • Handle: RePEc:ags:sereko:289160
    DOI: 10.22004/ag.econ.289160
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    Keywords

    Environmental Economics and Policy;

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