Negative Externality Pollution Essay - 554 Words

Negative Externality Pollution Negative Externality: Pollution Pollution has become a heated issue in recent years. The destruction of the environment along with serious health problems are the eventual effects. The extensive use and availability of automobiles, tremendous amounts of production in the booming economy and the constant increase in demand for energy, can be held responsible. Pollution and its effects can definitely be categorized as negative externalities. Although millions are inevitably responsible, nobody in their right mind enjoys being subjected to these conditions. Long-term affects of air pollution include chronic respiratory disease, lung cancer, heart disease, and even damage to the brain, nerves,†¦show more content†¦By limiting the amount of pollution will diminish the risk of health problems caused by these toxins. Now many industries have gotten involved with a technique called carbon trading in which those with high pollution releases buy the rights to pollute from others with low amounts of releases. This is a controversial approach to reduce pollution because it allows unnecessary amounts of pollution to be released. If companies chose to sell their rights, what they sell would not have been used in the first place; now they will be used by companies who can afford to purchase them. It is extremely expensive to purchase these rights, however some major companies can do so. In my opinion, all pollution standards should be tightened but over a period of time. I agree totally that pollution is out of hand at the current time, however it is a problem that has built up for many years and can’t be solved all at once. I feel that it is somewhat unfair to those companies who depend on their current status. By implementing procedures and regulations that are to occur over a period of time, it allows many companies to adjust gradually. I also feel that this policy of carbon trading should be eliminated. Although it does generate income for industries that currently comply, it allows many others to evade responsibility. I also feel that such things as public transportation and carpooling should be stressed. It provides an alternative that will drasticallyShow MoreRelatedPositive Vs. Negative Externalities1254 Words   |  6 PagesPositive vs. Negative Externalities An externality exists when a third party who is not directly involved in a transaction (as a buyer or seller of the goods or services) incurs a cost or benefit. In other words, an externality arises when a third party to a transaction experiences side effects (which can be negative or positive to them) due to transactions between buyers and sellers. When the third party benefits from this, it is called a positive externality and when the third party suffersRead MoreEconomics1444 Words   |  6 Pagespolluted and the government intervenes in order to control the pollution by providing economic encouragements towards the firms and organizations to reduce the amount of pollution emitted in the environment (Brown* 2001). When ETS is implemented it reduces the pollution of the environment caused by different firms thus making it its main goal. The type of market failure the ETS is addressing is the negative externalities. An externality is when the production or consumption of a good or service affectsRead MoreHow Do Externalities Affect The Market?1152 Words   |  5 PagesCarol Motley How do externalities affect the market? Introduction Externality in economic sense is the cost or benefit that affects a party who did not choose to incur this cost or benefit. 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