Problem Misidentification in the Weevokil Case: Banana Output vs. Chlordecone Use
In the case of the banana plantations in Guadeloupe and Martinique, the negative externality was caused by the use of a specific pesticide, chlordecone, for which alternatives existed. Therefore, the core problem was the choice of production technology, not the quantity of bananas being grown. Policies targeting banana output would have been misdirected because the use of chlordecone was the problem, not the production of bananas.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
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