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If an oil pipeline breaks and destroys available sources of potable water, it may increase price * quantity for companies selling bottled water, but the price i
by visualradio 5y ago
If an oil pipeline breaks and destroys available sources of potable water, it may increase price * quantity for companies selling bottled water, but the price increase is due to increased rent paid for access to clean water, due to an increase in scarcity caused by environmental degradation.
Additionally NIPA consider interest payments on debt financed speculative asset purchases and late fees paid to banks to be output. And in talks with local governments, property investors regularly claim that any project which might increase speculative land prices creates value when asking for tax abatements.