Stanford Prison Experiment

Stanford Prison Experiment The Stanford Prison Experiment is one of the most notorious and interesting experiments in recent social psychology history. Even though the goals of this experiment were to study the psychological effects of prison on people, it shed some light on how our behaviors can be changed through the roles we participate in. Current research, and role theory, has suggested that roles play a part in our identities and behavior. Parallels between the Stanford Prison Experiment and current research will be studied. A Study on Societal Roles:Â  An Examination of the Stanford Prison Experiment We play many roles in our day to day life: wife, mother, sister, friend, and coworker. Each role has implied duties that we may or may not be so aware of. We work diligently at balancing all of our responsibilities, which if balance is not attained, could lead to dysfunction in a persons life. In order to lead a healthy life, one must examine each role he or she plays. A Stanford social psychology professor, Phillip Zimbardo, was one of the pioneers in exploring social roles, behaviors, and how they are affected by certain situations. His radical research experiment opened up the eyes of the participants and many others as to what we will do in order to fulfill our roles. Zimbardo spent most of his early career conducting behavioral studies that focused on biological processes such as hunger and thirst. It wasnt until the 1960s that he really began to focus on social psychology issues, such as conformity. Philip Zimbardos experiment on prison life demonstrated how quickly a person can dissolve their own identity to fit into the social roles expected of them. The outcome and aftermath of this experiment is still important in current day psychology. First, Zimbardo chose the participants of the experiment to reflect the common or average individuals in the current society. According to Zimbardo, most were college aged, white males, who were from a middle class socioeconomic background (Haney, Banks, Zimbardo, 1973). After random assignment, the prisoner participants were arrested, booked, and then taken to the prison (Zimbardo, Haney, Banks, Jaffe, 1973). In an attempt to make the prison relatively realistic, Zimbardo spent a great deal of time with t he details such as the appearance of the prison and the cells, the uniforms of the guards, and the entry process for the prisoners on the first day. All of these components were planned in an effort to dehumanize, demoralize, and emasculate the prisoners (Zimbardo et al, 1973). The uniforms, weapons, and instructions that the guards received were in an effort to deindividualize them, which effectively displaced their identity, and supported their new authoritative roles (Zimbardo et al, 1973). By day two, the roles were firmly in place in both the prisoners and the guards. After a brief rebellion by the prisoners, the guards felt even more justified in their actions and aggression towards them (Zimbardo et al, 1973). The guards became sadistic, grossly exerting their control to the point of not allowing the prisoners to use the bathroom, instead forcing them to relieve themselves in a bucket that was not removed from the cells (Zimbardo et al, 1973). As time went on, the prisoners s howed signs of acute stress, changes in their mood and behaviors, and started to act in complete obedience to the guards (Zimbardo et al, 1973). The environment in the prison experiment became so dangerous that it was ended before the expected time period of completion. There are many reasons why this experiment was ethically unsuccessful yet rich in information about behaviors and roles. I believe that there were many influences which caused the participants to delve so deeply into their assigned roles. One factor that may have helped to change the participants behaviors was the fact that there was a power hierarchy. Even though this hierarchy was a farce and only part of an experiment, both the guards and the prisoners integrated this perceived imbalance into their identity. The actions, behaviors and attitudes of all involved changed drastically in the six days that the experiment was active. The male participants started off psychologically and physically healthy, as tested before the experiment by Zimbardo (Zimbardo et al, 1973). They soon changed into either sadistic, aggressive guards or anxious, compliant prisoners (Zimbardo et al, 1973). Outside people, who were loosely involved in the experiment, also performed certain roles. Both a priest and lawyer were contacted near the end of the experiment and both acted as though the prisoners were incarcerated in a real jail (Zimbardo et al, 1973). Zimbardo also admitted that his role as Superintendent became very realistic to him (1973). I believe other factors may have also affected the participants: the environment, the presence of the Warden and Superintendent, and the emotional environment within the experiment. Almost every person who came into contact with this experiment changed their point of view to yield to the success of the experiment; all becoming actors in a pretend, simulated situation. It took the experiments premature ending to remind everyone of their own identities, and that this was supposed to be a scientific study. This experiment, while only intending to study a small microcosm of human behavior, uncovered truths that may explain our behaviors in a much broader sense. The Stanford Prison Experiment has far reaching implications. Even though his study focused on a prison environment, the change in behaviors and attitudes due to our social roles can be seen in everyday life. In order to fully understand how our roles affect our behavior, we must first examine what comprises a role. A role is a set of norms that define how people should behave (Myers, 2008, p. 128). Role theory is concerned with studying patterned and characteristic social behaviors, parts or identities that are assumed by social participants, and scripts or expectations for behavior that are understood by all and adhered to by performers (Biddle, 1986, p.68). According to role theory, social attitudes can affect how we behave and even how we define ourselves. An interesting way to view the interactions of our various roles is to organize them into a classification system, similar to what is seen in Biology. What starts as a broad classification, such as our culture and gender, can t hen be reduced into smaller classifications such as local affiliations. All of these roles interact with each other and affect our daily lives. For example, I am a female in an individualistic culture. Each of those categories comes with certain expectations. Life would be vastly different for me if I were to be a female in a collectivistic society. Just one change in the hierarchy could change the subsequent roles that appear in my life. The study of roles and behaviors has been applied to many subjects. Many studies have been completed on how gender roles can have a negative effect on womens lives. Texas A M students Wood, Christensen, Hebl, and Rothgerber conducted a study on self concepts and role congruency (1997). Roles of males were defined by dominance and females were defined as intimate and communal (Wood et al, 1997). The research results showed signs that men had a more positive self concept when presented with situations similar to that of the normative sex role, i.e. dominance (Wood et al, 1997). Women had the similar tendency to have a positive self concept when presented with situations congruent with female roles (Wood et al, 1997). But what if a woman expressed more dominance? What if a womans lifestyle called for situations that required a more dominant, incongruent role norm? Eagly and Kassau postulated that women have a distinct disadvantage in leadership roles in the work environment due to expectations of their gender roles (2002). Women were perceived as less capable of being in a leadership role and evaluated negatively (Eagly and Kassau, 2002). This role congruity theory may explain many hardships experienced by females, such as the glass ceiling effect. Women may very well be hindered in their careers due to gender stereotypes. Men may also be judged for choosing career paths that are perceived as having more feminine qualities, such as nursing. Furthermore, men face criticism for staying at home with their children while their wive s work, also considered incongruent with current gender roles. With more and more women working, the standards for certain roles will inevitably have to change. Gender roles are just one small example of how social standards can affect our attitudes, behaviors, and how we live. As stated before, we have a multitude of roles that we live by throughout our lives. Each role comes with a unique set of social implications and prescribed behaviors. Each role becomes subtly stamped into our identity, integrated into who we are. I believe this quote is a wonderful summation and parallel analysis to the Stanford Prison Experiment and real world issues of roles and behaviors. Zimbardo states: In some ways, everyone will be a prisoner or a guard at some point in their life, because a guard is simply someone who limits the freedom of another person. Parents, spouses, and bosses do this all the time. And the recipients of this behavior? Well, they are the prisoners. (Slavich, 2009). Even though this statement may seem somewhat pessimistic, there may be a grain of truth in regards to the commitment to our roles and the consequences. We make little concessions to our freedoms every day. For example, we have obligations to work X amount of hours per week. Maybe we limit some of our behaviors out of respect for our spouses. Overall, I dont believe that most people can say that they get to do what they want to one hundred percent of the time. Our daily lives are dominated by rules and restrictions and that is not always a bad thing. But I believe it is important to examine closely the restrictions posed by the roles present in ones life. Zimbardo dared to ask the question: where does ones identity end and ones role begin? (1973). The two seem to be invariably intertwined, each having an effect on the other. The heavy weighing expectations of our roles seem to form parts of our identity. Are we, as people, greater than the sum of our roles? Or are we truly defined by our roles, and our roles alone? Does being a parent, or a spouse, or an employee of a certain company truly define you as a person? After reading Zimbardos The Lucifer Effect and watching many of his public speeches, I believe he would say that we have the power to use our roles for good. Also, that we are capable of transcending and breaking free from the negative, evil roles in our lives. Philip G. Zimbardo conducted one of the most important experiments in Social Psychology. The Stanford Prison Experiment gave us amazing insight into how extreme we will go in our actions and behaviors to fulfill our roles.

President :: essays research papers

Presidential Essay The real question at hand is what is a President? A President is a leader, someone who others will trust and rely on to make the right choices and decisions for the general public, or in this case the residents of the building. A President must possess many skills and abilities, for he is the chief officer of the organization, and is entrusted with the direction and administration of its policies. This is a very serious and important position, in which the person who assumes that role must be capable of performing at the highest level of capability. The President must possess people skills, which is the ability to respond appropriately to every situation in an appropriate and efficient manner. He has to be able to work well with others, especially the other members of his cabinet. The President must also have an expertise in communication skills, oral and written, so as to have the ability to talk with the students and fully understand exactly what they are saying and asking for. Aft er all, it is the job of the President to do what is best for the students. The president must be trustworthy, and have the trust of his cabinet members. He must be reliable, so he can take care of all problems or issues that come his way. Most of all, the President must be motivated. He has to have the fire in his heart, which burns at the thought of helping out and representing his peers. This is why I know that I am the right person for this position, because I possess all of these qualifications. I am the right man for the job, as I will not accept defeat, and will do everything that is in my powers to be the best possible representative of my peers, my residents, my friends. I have chosen to run for president, because I know and understand what the common person wants, and I have ideas on how to make this the greatest year living in La Riviere ever. Twenty years from now, I want everyone to look back on their experiences in La Riviere, smile, and say "I, President of the H all Council, made my sophomore year the greatest one at WNEC." I am running for Hall Council President because I want to make a difference. I want the opportunity, as President, to make one person's year a little bit better.

The Economics of Despair :: essays research papers

Since the late 1970s, social science researchers, the media, private foundations, and policymakers have directed considerable attention to the labor market problems of young adults and their families. Most of this attention has focused on high school dropouts, the poor, minorities, and inner-city youth. But an equally troubling—and broader—problem has received comparatively less notice: the steep and sustained decline since 1973 in the real (inflation-adjusted) earnings of young men and women generally. Even adjusting for demographic and socioeconomic characteristics, the labor market problems of young workers are disproportionately severe—they include higher than average unemployment and relatively low earnings when employed. This sustained drop in earnings has been especially dramatic for young adults with no postsecondary school education. Most proposed remedies have emphasized the quality of the labor supply. But improving education and training, while often worthwhile and necessary, is not by itself sufficient to raise earnings. If this downward trend, which has persisted through recession and recovery alike, is to be reversed, then policymakers and educators must address the demand side as well as the supply side. Raising young adult wages will require not only better academic performance, training, apprenticeships, and school-to-work programs, but also full-employment policies, changes in the configuration of jobs and careers, and larger young adult union membership. Prior to 1973, the annual and weekly earnings of both young adults and older workers had been improving markedly. Between 1967 (the year the Bureau of Labor Statistics began tracking weekly earnings of wage and salary workers) and 1973, the real median weekly earnings of 16- to 24-year-olds rose by approx i mately 8 percent. Since 1973, however, the ea rnings of young adults have fallen almost continuously. Between 1973 and 1979, the weekly earnings of young men working full time fell by 7 percent. Young men experienced a 19 percent decline in earnings (a real value of $72 per week) between 1979 and 1989. This decline cannot be attributed solely to business cycle contractions. About half of the 19 percent decline did take place during the recessionary period of 1979-1982. But between 1982 and 1989, a period of strong overall job growth, the weekly earnings of young men fell by another $33, or 9 percent. Earnings declined still more between 1989 and 1994, dropping yet another 9 percent. The result of all this decline? A young man under 25 years of age employed full time in 1994 earned 31 percent less per week than what his same-aged counterpart earned in 1973.

Egyptian Math Essay -- History Mathematics Research Papers

Egyptian Math   Ã‚  Ã‚  Ã‚  Ã‚  The use of organized mathematics in Egypt has been dated back to the third millennium BC. Egyptian mathematics was dominated by arithmetic, with an emphasis on measurement and calculation in geometry. With their vast knowledge of geometry, they were able to correctly calculate the areas of triangles, rectangles, and trapezoids and the volumes of figures such as bricks, cylinders, and pyramids. They were also able to build the Great Pyramid with extreme accuracy.   Ã‚  Ã‚  Ã‚  Ã‚  Early surveyors found that the maximum error in fixing the length of the sides was only 0.63 of an inch, or less than 1/14000 of the total length. They also found that the error of the angles at the corners to be only 12", or about 1/27000 of a right angle (Smith 43).   Ã‚  Ã‚  Ã‚  Ã‚  Three theories from mathematics were found to have been used in building the Great Pyramid. The first theory states that four equilateral triangles were placed together to build the pyramidal surface. The second theory states that the ratio of one of the sides to half of the height is the approximate value of P, or that the ratio of the perimeter to the height is 2P. It has been discovered that early pyramid builders may have conceived the idea that P equaled about 3.14. The third theory states that the angle of elevation of the passage leading to the principal chamber determines the latitude of the pyramid, about 30o N, or that the passage itself points to what was then known as the pole star (Smith 44). Ancient Egyptian mathematics was based on two very elementary concepts. The first concept was that the Egyptians had a thorough knowledge of the twice-times table. The second concept was that they had the ability to find two-thirds of any number (Gillings 3). This number could be either integral or fractional. The Egyptians used the fraction 2/3 used with sums of unit fractions (1/n) to express all other fractions. Using this system, they were able to solve all problems of arithmetic that involved fractions, as well as some elementary problems in algebra (Berggren).   Ã‚  Ã‚  Ã‚  Ã‚  The science of mathematics was further advanced in Egypt in the fourth millennium BC than it was anywhere else in the world at this time. The Egyptian calendar was introduced about 4241 BC. Their year consisted of 12 months of 30 days each with 5 festival days at the end of the year. These festival days were dedicated t... ...alking about. If they found some exact method on how to do something, they never asked why it worked. They never sought to establish its universal truth by an argument that would show clearly and logically their thought processes. Instead, what they did was explain and define in an ordered sequence the steps necessary to do it again, and at the conclusion they added a verification or proof that the steps outlined did lead to a correct solution of the problem (Gillings 232-234). Maybe this is why the Egyptians were able to discover so many mathematical formulas. They never argued why something worked, they just believed it did. Works Cited: Berggren, J. Lennart. "Mathematics." Computer Software. Microsoft, Encarta 97 Encyclopedia. 1993-1996. CD- ROM. Dauben, Joseph Warren and Berggren, J. Lennart. "Algebra." Computer Software. Microsoft, Encarta 97 Encyclopedia. 1993-1996. CD- ROM. Gillings, Richard J. Mathematics in the Time of the Pharaohs. New York: Dover Publications, Inc., 1972. Smith, D. E. History of Mathematics. Vol. 1. New York: Dover Publications, Inc., 1951. Weigel Jr., James. Cliff Notes on Mythology. Lincoln, Nebraska: Cliffs Notes, Inc., 1991

A question arises as to how governments

Employment is important for every individual. Employment is a source of income whether it is a private job or a government job. Depending on education, experience and caliber, individuals are offered jobs in specific cadres. Every job carries certain responsibilities whether it is a labor job, clerical job or a senior management job.There are certain management principles that are required to be practiced   for every employee at every level of job functioning. Government and businesses cannot function without people and in fact efficient employees are the greatest asset for organizations to grow towards profit and development. A question arises as to how governments have a role to play in private sector.The answer to this question is, in order to bring transparency in private sector businesses, there are certain legal enactments i.e. Employment relations Act 2004, Companies Act, Corporate Insolvency Law and many other legal rules for every purpose of public or private sector.   T hese enactments contain rules and regulations which can be referred whenever there is a requirement for fulfilling a provision.For instance Employment Relations Act 2004 states about employee and employer relations and how these have to be maintained which is required to be followed by both private sector and public sector, which reduces a number of conflicts and disputes that could occur without these legal rules.The relation of employee and employer is slightly a difficult task to manage with, and at one point of time, appears much easier depending on the situation.   However, every employee and employer have to be careful with the jobs being held with in respective organizations.There are many human resource management books which detail and discuss about employee and employer relations within office environment as well with office related aspects of management. Management of relation involves both personal manners as well treating others with respect.In management, there are a lso barriers of culture, origin of a person and much in respect of working environment. Especially in industrial sector, where there are quite a number of workers and who carry grievances or demands in paying high salaries, asking for more number of leisure hours or bonus payments etc., The skill and efficiency of management is evident in handling trade unions of industries.Trade unions are very tough to deal with and when the demands of union are not met with, closure of factories, stopping production or working on strike, or slow production and such other activities are undertaken. Therefore, management of industries have to be extremely careful with industrial workers.Governments in order to assist industries have enacted Employment Relations Act 2004. This Act specially deals with labor laws and trade union rights.  Ã‚   UK government also introduced Employment Bill 2007 – 2008 which covers all aspects of employment law. This would further improve the effectiveness of e mployment law which would benefit employers, trade unions, individuals and public sector.   It also protects workers and encourages law-abiding businesses.Dispute resolutions is one area which is always required in workplaces.   In this regard, the Bill details about statutory procedures and related provisions about dismissal cases.   Apart from the above, the Bill clarifies about National Minimum Wage and which imposes penalties on non-compliance methods in respects of payment of salaries, calculation of arrears and also strengthens employment agencies.

Antagonist Analysis of The Great Gatsby Essay

Tom Buchanan, the antagonist in the book, The Great Gastby, by F. Scott Fitzgerald is the darker side of the main character, Jay Gatsby. Where as Gatsby is an agreeable, attentive gentleman, Tom is the abrasive, physically powerful, and careless man who is concerned about one thing†¦himself. Tom is introduced as an arrogant and abusive husband to his wife Daisy Buchanan, who states, â€Å"That’s what I get for marrying a brute of a man, a great, big, hulking physical specimen of a —-,â€Å" as she tries to deal with his selfish and emotionally abusive ways (F. Scott Fitzgerald 12). The Great Gatsby explores the dynamics of relationships between the love (or lack thereof) between man and woman. Fitzgerald portrays antagonist Tom as self-centered human being, not only through the emotional abuse and negligence of his wife, but likewise through the sexual encounters and philanders of various women. One of Tom’s lovers, Myrtle Wilson, is so engrossed and enchanted by Buchanan that she is willing to risk her own marriage and is no longer attentive as some of her actions include â€Å"walking through her husband as if he were a ghost, shook hands with Tom, looking at him flush in the eye† (Fitzgerald 26). Unlike Tom, whose life revolves around no one other than himself, Gatsby’s life centers on finding the long lost love of his life, Daisy, and engulfing her with the true endearment of love between a man and woman. His one desire to fulfill his life with true love is interrupted twice by Tom Buchanan. Having loved Daisy as a young teenage boy and loosing her to life’s circumstances, Gatsby is determined to continue his search in hopes of locating this special woman who can never be replaced by no other beautiful face or body. Gatsby’s adoration and respect for Daisy drives him to cast all his possessions and even his life into securing her love and saving her name, as he did after the accident shifting blame from her to him, â€Å"but of course I’ll say I was† [driving the car that hit and killed Myrtle] (143). Tom and Gatsby are black and white images of one another. Tom, the darker character, is a cold heartless man who moves people around like pegs on a game board. He continually rolls the dice to calculate his next moves giving no thought to the human lives he has at stake. After the death of Myrtle, Tom shows his lack of interest for the welfare of the woman he has been having an affair with and uses an opportunity to shift conflict between George, Myrtle’s husband, and Gatsby, â€Å"Wilson’ll have a little business at last† (137). Unlike Tom, Gatsby’s bright image of love, concern, and devotion carries throughout the story. Gatsby holds onto love until the dire end, electing to protect Daisy from the wreck and the reckless relationship with her husband Tom, â€Å"I’m just going to wait here and see if he tries to bother her about that unpleasantness this afternoon (144). Tom is the perfect character to represent the antagonist in, The Great Gatsby. His selfish acts toward each character in the story shows his lack of respect for human relationships and his indulgence for self.

Cap and Trade Policy Paper Essay

Introduction: The issue of carbon emissions is an important one not only from an environmental perspective but also an economic one. While reducing carbon emissions is an important one for the health of human beings as well as that of the environment, the larger question is what type of policy strategy is best for both reducing such emissions which might have an impact on efforts to mitigate the effects of pollution on climate change. While ther are options to consider which does not rely on economics– technological or output standards achieved by command and control regulations–they are often fraught with political resistance by industry because they do not allow industry to make any choices or play a role in solving the problem of excessive emissions and the burden that these emissions place on others. Instead of such draconian measures based on fiat, the preferred options rely on economic tools instead to provide incentives to industry to police itself by either incenting investment in emission-reducing and/or energy saving technologies or to reduce production in line with the total/social-costs rather than just the private/ producer-costs of production. Two such economic policies to consider in this regard are emission taxes and cap-and-trade policies. Overview of Policy Problem: Carbon emissions reduction Consider a company that faces an increasing marginal pollution abatement cost curve as in the Figure 1. Left unregulated it will choose not to reduce its carbon emissions (a.k.a abate carbon emissions) and avert facing the costs of abatement represented by the area underneath the marginal abatement cost curve represented by area (B + C + D) in the diagram below. Figure 1: Marginal Costs and Marginal Benefits of Reducing Carbon Emissions [pic] Source: Econ 101: Carbon Tax vs. Cap-and-Trade, 2012, n.pag. Suppose that policy analysts have determined that the economically efficient level of pollution abatement occurs at the point where marginal benefits of abatement equal the marginal cost costs of abatement as is suggested in economic theory. The resulting level of carbon emissions is e* (reduction in emissions is measured from the far right in the diagram above to the pointe*). The question is what policy to follow to achieve e*: either some type of fiat policy involving either some type of output restriction or requiring use of a particular pollution-control technology or some type of policy that involves financial incentives to reduce emissions. This paper hypothesizes that policy options involving economic incentives are preferable to those options that involve regulatory fiat. Specification of Economic Policy Models: 1) A Carbon Emissions Tax: One policy instrument that can be used to achieve this level of abatement is to set a tax where marginal benefit equals marginal cost — represented by the horizontal â€Å"tax† line in the Figure 2 below. Under such a scheme, the polluter will find that it is cheaper to reduce carbon emissions so long as the marginal cost is lower than the tax. Since the tax bill (A + B) is great than the marginal abatement cost bill (B) to the left of the point e*, the firm will choose to reduce emissions up to the level of C with the remaining emissions level indicated in figure 2 measured from the right in the diagram. To the right of e*, the marginal abatement costs, represented by areas C + D, are greater than the tax bill (area D) so the firm will choose to pay the tax and continue to emit pollutants beyond e*. Figure 2: The Carbon Emissions Tax [pic] Source: Econ 101: Carbon Tax vs. Cap-and-Trade, 2012, n.pag. So long as the marginal costs and benefits of abatement can be known with certainty, an emissions tax can be set at the point of intersection of these two measures resulting in an efficient level of pollution emissions at e* with total abatement costs (including taxes paid) to the polluter of area B+D and providing the government with revenues represented by D (Econ. 101: Carbon Tax vs. Cap and Trade, n. pag.). It is when these marginal costs and marginal benefits are either not measurable in their entirety or when there is uncertainty about the figures obtained that leads to added questions as to whether this would be the best policy to follow. 2) A Cap Policy: An alternative policy to an emissions tax to achieve reductions in emissions through the tools of economics is to set a cap at the point where marginal social benefit equals marginal social cost of reducing emissions/abatement — represented by the vertical â€Å"cap† line in Figure 3 below. The polluting firm must reduce its carbon emissions to e* where the marginal social cost of reducing emissions equals the marginal social benefit of the products produced by the polluter. Such a policy–if the social costs and social benefits can be measured accurately—results in an efficient level of emissions produced/reduced at e* with an abatement cost borne by Figure 3: Cap Policy for Each Firm [pic] Source: Econ 101: Carbon Tax vs. Cap-and-Trade, 2012, n.pag. the polluter equivalent to area B (Econ. 101: Carbon Tax vs. Cap and Trade, n. pag.). The issue is whether total social costs can be measured and measured accurately in order to set such a policy at the correct or efficient level of emissions for each firm. Normally such policies do not result in efficiency even though an efficient level of overall emissions can be attained since it does not account for different costs of abatement in different firms. That is, a level of emissions can be attained that is equivalent to that achieved under an economically efficient policy but the level is not achieved at the lowest overall cost. One way of obtaining individual caps is for the government to auction off emission permits that total the pre-set amount of emissions that it feels is optimal. Firms with higher costs of reducing emissions will bid higher than firms with lower cost structures. Again, the only problem is determining what the total amount of emissions should be reflecting all social costs and benefits of reducing carbon emissions. 3) A Cap-and-Trade Policy An added twist on the cap policy allows firms to trade emission allotments between themselves based on the buyer of allotment bargaining with the seller over the proper price to pay for the extra allotment. A two-panel diagram is needed to better understand the logic of trading emission allotments. Figure 4 illustrates the marginal cost of reducing emissions of two firms. One firm is run on older technology with high abatement costs that goes from right to left with zero costs represented at the lower right-hand corner of the diagram. The other firm has newer technology in its plant with lower abatement costs that goes left to right with zero costs represented at the lower left-hand corner of the diagram. The width of the horizontal axis is the reduction in emissions that must be achieved overall to an efficient level. The intersection of the two marginal cost curves is where economic efficiency is achieved. That is, the value achieved Figure 4. Cap-and-Trade Between Firms Policy Source: Econ 101: Carbon Tax vs. Cap-and-Trade, 2012, n.pag. from the last dollar expended on abatement must be the same across all firms in the market. This is known as the equimarginal principle (Boyes and Melvin, 2011,122). The total cost of attaining the efficient abatement/emissions level is equal to the area C + G + K. At the efficient level of emissions, e*, the low cost (of reducing emissions) firm should reduce more emissions than the high cost (or reducing emissions) firm. Such a policy can be implemented by issuing carbon permits to different firms and allowing them to buy and sell their permits in the open market. Normally, equal amounts of permits are issued to each firm since it is difficult to assess the true abatement cost a priori. In the end, the marketplace will help determine the differences in cost structure depending on how high a firm is willing to bid for an extra permit or two (Econ. 101: Carbon Tax vs. Cap and Trade, n. pag.). As with the individual firm cap policy, the cap-and-trade policy is predicated on the government being able to determine the optimal level of total emissions desired reflecting social costs and benefits of reducing carbon emissions. Combining the different economic policy options together, it is obvious that it is possible to achieve the same level of reduction in emissions by setting a tax at the same level as where the marginal costs of reducing emissions is the same between firms which is at the level represented by the horizontal line in Figure 4 above. As above, the polluting firms will notice that it is cheaper to abate carbon emissions as long as the marginal abatement cost is lower than the tax. The firms with the higher cost structure will reduce emissions to e* when measured from right to left and incur abatement costs equivalent to area K and pay taxes equivalent to area B+C+F+G. The firms with the lower cost structure will reduce emissions to e* when measured from left to right and incur abatement costs of C+G and pay taxes equivalent to areas J + K in Figure 4. Setting a cap on each individual firm will produce the same level of reduction in emissions, but given that it is difficult, if not impossible, to individualized caps based on different cost structures of abatement, an efficient outcome is difficult to achieve under such a policy even though emissions are reduced to the same overall level. Regarding the market failure due to the negative carbon externality, both a carbon tax and carbon cap-and-trade will achieve the same level of increased efficiency–assuming that measurements of costs and benefits can be measured accurately– by reducing emissions to the optimal level at minimum cost. The real difference in these policies is due to differences in the distribution of costs. In the carbon tax policy, the government receives added revenues while in the cap and cap-and-trade policies when permits are simply handed out to firms, the firm has no additional outlays other than the cost of abatement to stay within the cap or to purchase additional allotment from other firms. If the permits are initially auctioned off by the government, the additional revenues to the government should be nearly the same as with a tax scheme if marginal social costs and benefits have been measured accurately. However, the economics-based policies are preferable to policies based on fiat where specific technologies (e.g., smoke-stack scrubbers) or a uniform cap on emission outputs across all firms since these other policies fail to take into account social costs and benefits. With regard to the economics-based policies, the following added impacts may also occur. First, in addition to static efficiency–efficiency occurring within a single period of time–there may also be dynamic efficiency within these policy schemes whereby firms have an incentive to adopt new technology over time to reduce their marginal costs of reducing carbon emissions (Econ. 101: Carbon Tax vs. Cap and Trade, n. pag.). Secondly, carbon emission taxes and/or auctioning permits will generate additional government revenue that might be used to offset various distortionary taxes on labour and/or capital (Econ. 101: Carbon Tax vs. Cap and Trade, n. pag.). Evidence and Analysis: There are various problems associated with the design of emissions tax regimes warranting discussion. First, if such a tax were placed on individuals rather than firms without any offsetting changes in other taxes or government transfers, a carbon tax might be regressive suggesting that the highest tax burden would be placed on the poor (Poterba, 1991, 11). This is mostly applicable to gasoline taxes where a flat emissions tax would make up a higher percentage of the income of poorer over wealthier taxpayers; thus, an issue of equity arises here. Likewise, firms with higher profit margins would shoulder less burden from the tax than firms with lower profit margins given a similar costs of pollution abatement. Poterba (1991) suggests that this regressiveness could be offset by changes in either the direct tax system or in government transfers. Second, as the population grows and production totals continue to increase to meet the demands of this growing population, emission taxes will need to rise to keep emissions at a particular level; this may lead to a set of distortions in terms of domestic vs. foreign production whereby firms can transfer production to other jurisdictions that do not have such taxes in place. Thus, international trade leads to an opportunity to get around the tax scheme and the higher the taxes instituted, the higher the incentive to engage in such behaviour. Thus, if emission taxes differ significantly between two neighbouring jurisdiction–for example, the State of New York and Connecticut or even New York and one of its neighbouring Canadian provinces–there is an inherent incentive to move production outside of the jurisdiction with the highest taxes and import products from elsewhere. Third, a central issue regarding the design of carbon emissions taxes to harmonize such polities with other fiscal instruments designed to mitigate the effects of climate change. For instance, it is important to ensure that taxes on chlorofluorocarbons and emissions from fossil fuels are comparable to avoid distortions in consumption that may lead to a worse outcome for the environment than in the absence of such policies (Poterba, 1991, 27). Bosquet (2000) conducted a review of the evidence regarding the impact of carbon emissions taxes on the environment and the economy. She claims that environmental taxes involve the shifting of tax burden from employment, income, and investment to resource depletion and waste. She asks the general question of whether such tax reform can produce a double benefit by helping the environment and the economy simultaneously. Based on her reviews of the literature and available evidence, she concludes that when emissions taxes are instituted, they are generally associated with reductions in payroll taxes, and–if wage-price inï ¬â€šation is prevented–they often result in signiï ¬ cant reductions in pollution and small gains in employment (Bosquet, 2000, 19). Also associated with the implementation of such environmental taxes are also marginal changes–gains or losses– in production in the short to medium term, while investments decease marginally and prices increase. However, she cautions that the results of such environmental taxes in the long-term are less certain (Bosquet, 2000, 29). With regard to cap and cap-and-trade policies, the evidence is also available regarding the effectiveness and consequences of such policies. Stavins (2008) describes a graduated cap-and-trade scheme that involves initially just Carbon gasses with 50% of permits issued to polluters in the market free of charge and other half auctioned off. Over 25 years, the percentage auctioned off annually will gradually increase to 100% and other greenhouse gas emissions will be included over this time span. The idea is to implement a gradual iterative policy with a slow trajectory of emission reductions. As time goes on, other emissions are included in this scheme and the system provides for harmonizing this scheme over time with effective cap-and-trade systems and other emission credit reduction programs in other jurisdictions. This harmonization effectively addresses the issue raised with emission tax policies that are unilaterally established in one jurisdiction without consideration for the po licies in neighbouring jurisdictions. If there is an effective way to dovetail policies in different jurisdiction, then this would level the playing field between domestic and imported products. Regarding actual cap-and-trade policies already in place, Colby (2000) analyzes a cap-and-trade policy for limiting Sulfur Dioxide emissions. The changes stemmed from the Clean Air Act of 1990 which allowed for a nationwide cap-and-trade policy for industrial firms emitting sulfur dioxide into the atmosphere. Marginal costs of reducing emissions fell substantially duringn the 1990s due to reduced costs of installing scrubbers, reduced costs of flue gas desulfurization, and falling costs for low sulfur coal all due, to a large extent, to an active program of trading/buying allowances between firms that emerged after a few years of experience after the program was initiated. As Colby (2000) states, â€Å"The allowance trading market enhanced competition among the different methods that firms use to control emissions, adding impetus to cost reductions† (Colby, 2000, 642). Low allowance prices and falling marginal costs associated with reducing emissions produced earlier-than-predicted cutbacks in sulfur dioxide emissions. Allowance prices rose from lows of $80-90/unit in 1996 to about $215/unit in mid-1999 spurring further conservation efforts. Colby (2002) does mention that design and implementation of cap-and-trade schemes involves some important policy tradeoffs: equity among the players, balancing use levels with resource conditions, facilitating transactions between firms wishing to trade allowances, accurate accounting for externality costs, assuring adequate monitoring of emissions levels, and documenting welfare gains due to the policy. She says that efficient trading mechanisms can be more easily implemented when there is a strong political or legal mandate to cap resource use and trading allowances are sensed by all parties involved to be a way to ease adjustment to limits on emissions (Colby, 2000, 638). In choosing between the various policies, it is inevitably important to sense the level of uncertainty over measuring the items of interest. With regard to emissions taxes, it is important to have fairly accurate estimates of marginal social costs and benefits and with regard to cap-and-trade schemes, there needs to also be a fairly accurate means of estimating the optimal level of emissions given all the costs and benefits involved in reducing emissions. If it becomes difficult to measure these items accurately, then the expected deadweight loss and associate probabilities of various miscalculations needs to be assessed and compared across the different strategies to determine the policy that produces the smallest expected deadweight loss which is key from an economic perspective. Since policies based on fiat, such as technology mandates and non-economically based output standards, are not set with regard to these types of measures, it is likely that the deadweight economic loss associated with these policies will be greater than for either emissions taxes or better yet, cap-and-trade policies. Conclusion: The evidence suggests that economics-based emissions policies are preferred over policies based on fiat. Moreover, the strongest evidence for promoting investment in pollution control equipment and reducing emissions that mitigate the effects of climate change appear to involve cap-and-trade policies. Partially, this might be due to the flexible design of such policies which—through the auctioning and/or trading of allowances—account for changing market conditions. This policy, even more so than emission taxes, forces the industry to face current market conditions through the use of auctions and trading for emission allowances. As a result, the parties are forced to make choices based on strong economic criteria to obtain efficiencies over time. Works cited: Bosquet B. 2000. Environmental Tax Reform: Does It Work? A Survey of The Empirical Evidence. Ecological Economics. 34, 19-32, Colby G. 2000. Cap-and-Trade Policy Challenges: A Tale of Three Markets. Land Economics, 76, 638-658. Econ. 101: Carbon Tax vs. Cap-and-Trade. 2012. Website. Retrieved on June 5th, 2012 from http://www.env-econ.net/carbon_tax_vs_capandtrade.html Melvin W. Boyes M. 2011. Microeconomics. 9th ed. Marion, OH: South-Western, Cengage Learning, Poterba JM. 1991. Tax Policy to Combat Global Warming: On Designing a Carbon Tax. NBER Working Paper. MIT-CEPR 91-003WP. Retrieved on June 7th, 2012 from http://dspace.mit.edu/bitstream/handle/1721.1/50159/28596145.pdf?sequ Stavins RN. 2008. Addressing Climate Change with a Comprehensive U.S. Cap-and-Trade System. Nota Di Lavoro 67.2008 Fondazione Eni Enrico Mattei. Retrieved on June 7th, 2012 from http://www.feem.it/userfiles/attach/Publication/NDL2008/NDL2008-067.pdf