We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

First let’s define externality Essay

Essay Topic: ,

Sorry, but copying text is forbidden on this website!

As an example of the above definition:
Pollution from a factory can affect the health of nearby residents – negative The same factory can provide jobs to nearby residents – positive

Negative externality is two part: production and consumption. I will be using both these externalities in my following discussion on pollution.

Companies pollute on three different platforms: air, water and land. Air pollution is caused by:
•Factories
•Power plants
•Vehicles
•Solvents
•Domestic/industrial chemicals
•Military
•Natural causes – volcano, wildfires
(ref: aboutairpollution.co.za)

Water pollution is caused by:
•Urbanization
oLand disturbed from construction
oChemical pollution from mines, industries, etc
oInadequate sewage and treatment
•Deforestation
•Damming of rivers
•Destruction of wetlands
(ref: www.randwater.co.za)

Land pollution is caused by:
•Domestic, nuclear wastes and industrial wastes,
•deforestation
•human sewage
•mining and other factories
•increased mechanization
• Sewage discharged into rivers instead of being treated properly • Sanitary/hazardous landfill seepage
• Cemeteries
•Scrap yards (waste oil and chemical drainage)
(ref: www.wikianswers.com)

You will note from the above that pollution is a hot topic and one of the most commonly used to define negative externality.

The above causes of pollution serve as a grim reminder of the visible and mostly invisible effect on the consumers. And it certainly is not calculated into the economy.

The costs and benefits of pollution can be calculated by economists but this will not reduce its impact, merely factor into the cost of production of goods.

What will impact on the economy is the demand for pollution free living and the purchasing decision that will allow this. The following few examples come from my own ‘green’ list: •Diesel instead of petrol

•Switching of unnecessary electricity sources
•Organic foods within my budget
•No smoking
•Living in a ‘leafy’ suburb

A lot of South Africans (and world) citizens are making conscious buying decisions to reduce the effects of global warming and the depletion of the ozone layer. The costs of living ‘green’ is higher than average and the economy will see the impact of this as consumers demand ‘cleaner’ living conditions.

How can governments help reduce or eliminate negative externality? •Increase taxes on domestic pollutants such as cigarettes, solvents, etc •Pollution tax for industries
•Pollution limits on emissions
•Focus on residential and business zoning and the effect on the surrounding environment •New commercial/residential buildings must include ‘green’ technology and utilities •Providing separate bins for proper product recycling – domestic, commercial and industrial •The abolishment of ‘shanty towns’ for proper housing

(source Ref: www.factsanddetails.com, www.statssa.gov.za, www.thinkquest.org, Economics: Global and South African Perspectives, Michael Parkin )

How to cite this page

Choose cite format:

First let’s define externality. (2016, May 17). Retrieved from https://studymoose.com/first-lets-define-externality-essay

We will write a custom sample essay onFirst let’s define externalityspecifically for you

for only $16.38 $13.90/page
Order now

Our customer support team is available Monday-Friday 9am-5pm EST. If you contact us after hours, we'll get back to you in 24 hours or less.

By clicking "Send Message", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
No results found for “ image
Try Our service
online

Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Click to learn more https://goo.gl/CYf83b

online

Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Click to learn more https://goo.gl/CYf83b

image

Your Answer is very helpful for Us
Thank you a lot!