Go to the internet and find a news article that discusses a potential positive o

Question

Go to the internet and find a news article that discusses a potential positive or negative externality. Summarize key points in your initial discussion post. Be sure to use the concepts and frameworks we are covering this week. For example, you may want to address what externality this regulation attempting to address? Is it a positive or negative externality? What is the current policy being used? Is there an alternative policy approach that may work better/worse (taxes or subsidies, for example) and why? How effective does the current policy appear to be working?

Nothing on soil please

Explanation / Answer

Externality occurs when the actions of consumers or producers give rise to negative or positive side-effects on other people who are not part of these actions, and whose interests are not taken into consideration.

Example- A polluting firm creates negative externality of production. A company providing free on the job training creates positive externality of production. A person smoking creates negative externality of consumption. Govt making education compulsory creates positive externality of consumption.

For this answer we will consider negative externality of consumption and Positive externality of production.

1. Negative externality of consumption

Article link : https://www.firstpost.com/tech/science/maharashtra-plastic-ban-explained-advantages-alternatives-and-the-way-ahead-4612191.html

In this article it is explained how increase consumption of plastic bags in maharshtra state of India is choking city pipelines and also creating extra cost on disposing. The policy that ggovt is imposing is govt. regulation of polluting goods.

There are other alternatives like negative advertising, imposing tax on consumers. Govt. had banned plastic bags which were highly polluting but closing the factories is better option. Black marketing may also happen due to bans.

2. Positive externality of production:

Article link: https://www.bloomberg.com/news/articles/2017-12-14/tesla-s-nyc-store-sells-solar-cars-and-home-batteries-under-one-roof

1.In this article it is explained how increased production of environmental friendly energy can be the future alternative of polluting fossil fuels. This will bring latest technology n the economy, will reduce dependence on fossil fuels and country may march ahead.

There are other alternatives like Direct govt. provision and subsidies for these kind of projects.

Govt. Does provide incentives to these efforts now but it is not enough considering threats of global warming.

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