be seen with the commitments made by most multinational corporations to reducing their CO2 emissions and acknowledging the impact their business activities have on society. The figures below illustrate how shadow prices can effect efficient allocation of resources. Figure 1 illustrates a positive shadow price where the social marginal cost is less than the private marginal cost. An example of this is vaccinations, they provide a benefit to other people in society because after receiving one you no longer spread infectious diseases. The Private Marginal Cost (PMC) is simply the cost of producing the vaccines whereas the Social Marginal Cost (SMC) is the PMC less the net social benefit of getting vaccinated. Figure 2 illustrates a negative shadow price where the social marginal cost is greater than the private marginal cost. An example of this is pollution, discarding toxic waste chemicals into waterways have a negative effect on fish stocks in the region, reducing local fisherman's income. In this instance Private Marginal Cost (PMC) is simply the cost of producing the chemicals whereas the Social Marginal Cost (SMC) is the PMC less the net social cost of discarding toxic waste chemicals. Cost-benefit analysis Although shadow pricing may be inaccurate, it is still often used in cost-benefit analyses. Business owners and policymakers turn to shadow pricing to determine the cost the intangible costs and benefits of the project. There are usually many tools to estimate monetary values of these intangibles. They include contingent valuation, revealed preferences, and hedonic pricing. Shadow pricing is frequently used to figure out the monetary values of intangibles which are hard to quantify factors during cost-benefit analyses. In the context of public economics, shadow pricing is very useful for governments and policymakers to evaluate whether a public project should be pursued. This is because public goods are very rarely exchanged in the market, making it difficult to determine its price. To help determine the monetary value of these goods, these three tools are often used. Take the example of a government determining whether it wants to undertake a freeway project that would save commuters 500,000 hours a year, save 5 lives a year, and reduce air pollution due to decreased congestion but with a present value cost of $250 million. Contingent valuation Contingent valuation estimates the value a person places on a good by asking him or her directly. It is essentially surveys for individuals on how