StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Positive and Negative Externalities - Research Paper Example

Comments (0) Cite this document
Summary
This paper identifies and discusses three externalities that exist in particular situations in economics. It will also highlight solutions to mitigate these externalities. It will finally analyze the different stakeholders involved in the externalities and their role regarding the externality…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Positive and Negative Externalities
Read TextPreview

Extract of sample "Positive and Negative Externalities"

Positive and Negative ExternalitiesPositive and Negative ExternalitiesIntroduction In economics, externalities are costs or benefits that result from transactions or activities, and that affect an uninvolved party whose choice was not to incur any particular costs or benefits. These externalities can either be positive or negative. Negative externalities are actions of products on consumers which have a negative implication on the third party. Positive externalities are actions on product which are beneficial to the third party (Tulkens & Chander, 2006). This paper will identify and discuss three externalities that exist in particular situations. It will also highlight solutions to mitigate these externalities. It will finally analyze the different stakeholders involved in the externalities and their role regarding the externality.Three Externalities There are negative externalities related to environmental consequences. An example of a negative externality with environmental consequences is pollution. There are different forms of pollution: air, water, and noise. Air pollution has public health implications and causes damage to buildings and crops. Water pollution has the potential to cause harm to humans, plants, and animals. Noise pollution, on the other hand, might cause disruptions, both mental and psychological, to people and animals. Public goods are an example of a positive externality. These are the goods which benefits people cannot be excluded from enjoying. Public goods include clean water, public defense, law enforcement, social amenities, and so on. These goods are accessible to most people in the society (Tulkens & Chander, 2006).   If businesses start accepting payments online for the services and goods they offer, these actions can lead to a negative externality. This means that clients no longer need to buy paper cheques in order to pay, a situation which means that cheque printing firms will lose revenues. This can also result into unemployment especially for employees whose role is processing cheques.Situations Within Which These Three Externalities Exist In the course of the company operation, byproducts are created. These byproducts make their way into the environment and cause pollution. Air pollution results from the burning of fossil fuels in industries. Water pollution occurs when industrial wastes are deposited into water sources. Noise pollution occurs in situations where the production process emits destructive sounds that get into the atmosphere. Public goods exist for the satisfaction of the needs of the entire society. These goods exist so that everyone in the society can benefit from them. If such goods did not exist, then people in the society would suffer since they could not afford some of these goods (Tulkens & Chander, 2006).  For instance, a person cannot have the finances to build their own roads to use. Today a common trend in business is selling products online. Many companies are slowly embracing e-commerce which is why it has become a common form of conducting business and a reason of cheque reduction.Solutions to These Externalities Pollution can be addressed through making proper arrangements when it comes to disposing byproducts from manufacturing processes. These disposal methods can include dumping them in landfills instead of dumping them without taking any caution. It also involves flushing wastes into oceans instead of allowing them run into rivers. Another strategy could be adopting sound mitigation mechanisms so that the excess of noise from the factory does not reach the public. If organizations become keen on using new technologies that reduce emissions, then the problem of pollution will be solved. Ensuring that the public goods are available for the entire society is a way of reducing the chances of people lacking important amenities (Tulkens & Chander, 2006). Discouraging businesses from going into e-commerce can lead people to make purchases through cheques. Therefore, organizations manufacturing these cheques will still be in business.Stakeholders Involved in Externalities There are different stakeholders who are a part of these externalities. These stakeholders are involved in the externalities at different levels. The stakeholders include the government, the community, suppliers, and employees.Roles of Stakeholders in Regard to Externalities The government has a role to play when it comes to some of these externalities. The government has a mandate to enact laws against pollution. Companies should ensure that they follow these laws, failing which they can face prosecution from the government. The government is also in charge of providing public goods. It should ensure that these goods are provided to the society and always maintained. Suppliers of cheques and employees in banks are the ones who suffer in cases where businesses adopt e-commerce business strategies. This is because their work entails providing cheques for suppliers and clearing cheques for employees in banks. In case a business carries its transactions online, then the suppliers will have nothing to do as their involvement with the business will have been cut short (Tulkens, & Chander, 2006).  
Conclusion There are many externalities which exist. The effects of negative externalities can be mitigated and, at the same time, the benefits of positive externalities can also be enhanced. Therefore, companies should strive to create positive externalities and reduce negative ones.
ReferencesTulkens, H. & Chander, P.  (2006). Public goods, environmental externalities and fiscal competition selected papers on competition, efficiency, and cooperation in public economics. New York: Springer.  Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Positive and Negative Externalities Research Paper”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1478690-positive-and-negative-externalities
(Positive and Negative Externalities Research Paper)
https://studentshare.org/macro-microeconomics/1478690-positive-and-negative-externalities.
“Positive and Negative Externalities Research Paper”, n.d. https://studentshare.org/macro-microeconomics/1478690-positive-and-negative-externalities.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Positive and Negative Externalities

The Negative Impacts of Gastrostomy Feeding on Oral Feeding in Children

Some of the indications for a gastrostomy include congenital anomalies like esophageal fistula, tracheoesophageal fistula, cleft lip and palate, intestinal atresia, and abdominal wall defects.

Other conditions include Down syndrome, failure to thrive, gastroesophageal reflux disease, cystic fibrosis, organ transplants, cancer, congenital heart defect, and infants with cerebral palsy and encephalopathy (Burd & Burd, 2003)

Nasogastric tube feeding may be used for the short-term but there are numerous limitations in its long-term use including nasal discomfort, irritation or penetration of the larynx, recurrent pulmonary aspiration, blockage or displacement of the tube, and decreased survival rates. Therefor...
8 Pages(2000 words)Term Paper

Positive and Negative Consequences of Deforestation

We live on a beautiful planet where natural beauty refreshes our eyes. Forests add to the natural beauty of the world. Forests help in minimizing global warming because of their ability to store carbon. They help in controlling floods, purifying water, cycling nutrients and thus providing food for the millions of people living on this planet. Forests also provide a natural habitat to millions of species of birds and animals. It thus becomes our moral duty to preserve our forests not only for ourselves but for millions of species that live there. unfortunately, technology is not helping us do that (Smith et. al, 2000).
On one hand, man-made machines are doing wonders in the world, on the other hand, they appear equally destruc...
14 Pages(3500 words)Assignment

Negative Advertisement When It Works

Keeping aside honesty and ethics rich politicians invest huge amount of money to launch election campaign to win the favor of the public. Empirical evidences suggest that this strategy quite often works but by no means can we ignore the negative impact of such campaign. In general, propaganda concerns set of messages aimed at influencing the opinions or behavior of large numbers of people. Instead of impartially providing information, propaganda in its most basic sense presents information in order to influence its audience. The most effective propaganda is often completely truthful, but some propaganda presents facts selectively to encourage a particular synthesis, or gives loaded messages in order to produce an emotional rather...
9 Pages(2250 words)Case Study

The Dangers and Negative Characteristics of Ethno-Nationalism

Ethnonationalism results in prejudice and intolerance and eventually brings about bloody conflict between members of the different ethnic groups.
The difference between ethnonationalism and plain nationalism which may refer to citizen, civic or territorial nationalism is that while the latter results from a rational association of people, the former perceived itself as bound by a common historic origin. While civic (or territorial) nationalism is voluntary and open itself to anyone who wishes to join it, ethnonationalism, on the other hand, makes compulsory the inclusion of members of the same origin and the exclusion to those who do not (Rydgren 2004 mp 133).
According to KecManovic, there are five primary tenets of eth...
12 Pages(3000 words)Case Study

Why and How the Negative Opinions on Boxing Are Justified

...Research paper on why and how the negative opinions on boxing are justified Introduction: Sporting activity is essentially an offshoot of the primordial instinct of survival and growth of a society. Over the years it has evolved into many forms ranging from direct physical confrontation to indirect acts like using balls, racquets, and balls. But one sporting activity that is still reminiscent of the primordial instinct is boxing. Even though it has developed a set of rules and regulations that sets it apart from Plain Street fighting, there are concerns that it is too violent, and also that it promotes violence and is detrimental to long term health of the participants. This paper reviews the relevance of boxing in today’s world when...
7 Pages(1750 words)Assignment

Analysis of Negative Equity Spells End of US Love of Homeownership Article by Dominic Rushe

...1. Article Summary The article by Dominic Rushe d ‘Negative equity spells end of US love of home ownership’ appeared on the internet on Friday the 22nd of April, 2011. The article can be accessed at us-housing-market-still-in-doldrums. The article states about the situation of the housing market in the US; “it is still on the slide for five years and there is no sign of an imminent recovery.” Home possession degrees are now back to those levels as was seen in 1998. Some economists are even anxious that the USs may have lessened their love of property ownership. It looks that boom years had never occurred. Paul Dales, US economist at Capital Economics says that "You would have to go back to the Great Depression to find anything similar...
6 Pages(1500 words)Term Paper

Positive and Negative Reviews

He was a British with intense abilities in languages that included Latin, Hebrew, Greek, French, and Dutch. Roger Williams’ university became a university in 1992 long after it had purchased about eighty acres of bordering land in Bristol in the year 1969. The school closed down briefly during the World War II period in a time that the YMCA had taken the leadership of the board of the institution.
In many occasions, the success of every educational institution is attributed to the realizations of its founder. As a result, the institution dedicated itself to the values and ideologies of its founder that were to offer freedom, education, and tolerance to people of all lifestyles. It sits on Rhodes Island State of the U.s...
6 Pages(1500 words)Term Paper

Opportunities for the Development of Positive Environmental Outcomes during the Planning and Development Process

...THE OPPORTUNITIES FOR THE DEVELOPMENT OF POSITIVE ENVIRONMENTAL OUTCOMES DURING THE PLANNING AND DEVELOPMENT PROCESS AND THE CULTURAL, POLITICAL, FINANCIAL AND LEGISLATIVE BARRIERS THAT MAY PREVENT THESE OUTCOMES By Name Course: Lecturer: Institution of Affiliation: City and State: Date: Word Count: 2092 The Opportunities for the Development of Positive Environmental Outcomes during the Planning and Development Process and the Cultural, Political, Financial and Legislative Barriers That May Prevent These Outcomes Introduction Effective environmental planning and developments are among the significant aspects that can contribute to better environmental management; thus contributing to environmental sustainability. Developing...
8 Pages(2000 words)Term Paper

A Positive Move Towards Environmental Sustainability

Countries such as the Netherlands have strict environmental policies that attract penalties. In this essay, I will analyze the policies that have been developed by Sweden, one of the countries that have done very well in developing and implementing its environmental policies. On the other hand, a comparison will be drawn with Kenya, one of the developing countries that have demonstrated a positive move towards environmental sustainability.
Sweden is a country in Europe that has adopted very stringent measures to ensure environmental sustainability. Its environmental policy is a long-term strategy that is focused on ensuring that the next generation will have the fruits of good environmental measures. It is the sole responsibi...
8 Pages(2000 words)Case Study

The Negative Effects of Atomic Bombs on Hiroshima and Nagasaki

...The Negative Effects of Atomic Bombs on Hiroshima and Nagasaki The bombing of Hiroshima and Nagasaki by America has been one of the most controversial events in the world history in the last century. The event has been placed in the top hundred stories of the twentieth century by 1999 news editors (Frank, 2005, p.20). It was on August 6, 1945 that America dropped the first atomic bomb on the Japanese city, Hiroshima which took the lives of 70,000 to 100,000 people (Kagan, 1995, p.17). Even before the shock of the first event sank in, America dropped the second atomic bomb three days later on Nagasaki. The economic disaster that followed along with million of casualties as a result of the bombing forced Japan to eventually surrender...
10 Pages(2500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Positive and Negative Externalities for FREE!

Contact Us