First let’s define externality Essay

As an example of the above definitionPollution from a factory locoweed affect the health of near residents negative The same factory clear provide jobs to nearby residents positiveNegative externality is two part production and consumption. I entrust be using both these externalities in my following news on pollution.Companies pollute on three different platforms air, water and land. Air pollution is ca apply byFactories berth plantsVehiclesSolventsDomestic/industrial chemicalsMilitaryNatural causes volcano, wildfires(ref aboutairpollution.co.za)Water pollution is caused byUrbanizationoLand disturbed from lookoChemical pollution from mines, industries, etcoInadequate sewage and treatmentDeforestationDamming of riversDestruction of wetlands(ref www.randwater.co.za)Land pollution is caused byDomestic, nuclear wastes and industrial wastes,deforestationhuman sewagemining and other factoriesincreased mechanization Sewage discharged into rivers alternatively of being treated dec orously Sanitary/hazardous landfill seepage CemeteriesScrap 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 gross 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 buying decision that will allow this. The following few examples come from my own young list diesel engine instead of petrolSwitching of unnecessary electricity sourcesOrganic foods within my budgetNo dopeLiving in a leafy suburbA lot of South Africans (and world) citizens are qualification conscious buying decisions to reduce the effect s of global warming and the depletion of the ozone layer. The costs of living green is high 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(prenominal) as cigarettes, solvents, etc Pollution tax for industriesPollution limits on emissionsFocus on residential and business zone 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 )