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6.03 Research Econ

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by

Amanda Sgambelluri

on 16 August 2013

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Transcript of 6.03 Research Econ

There are many ways to address air pollution. Government, business, and we as the people all have to be willing to try and make this a better place for each other. Government has to enforce the law. Business also have to make a change in the products they use, not only businesses but households as well. Most products now tell you whether or not it is harmful to the environment. There are many perspectives on how air pollution can change. This is a big issue that people don't take seriously but air pollution causes many diseases like bronchitis and cancer. Ways to stop air pollution are simple steps like carpooling, recycling and planting trees to filter the air.

There are four different sectors of air pollution, there's government, households, businesses and the rest of the world.

Government/Economic
s
:
Negative Externalities
-Air pollution affects the loss of productivity of people, crops and labor. "Acid rains (and depositions), smog and ozone pollution change the temporal scale during which investments on infrastructure can be amortized and must be replaced. Besides health costs, air pollution directly impacts on the productivity of the labor force in terms of total man-hours with time lost at home, health facilities or attending for the care of others."
Positive Externalities-
"When a positive externality exists in an unregulated market, consumers pay a lower price and consume less quantity than the socially efficient outcome." Consumers pay a price and receive quantity for the price they pay; at price and quantity the marginal benefit to society is much higher than marginal cost, resulting in a deadweight welfare loss. "In order to get consumers to consume more of a good that has a positive externality, a subsidy can be given to them. The subsidy will increase the marginal benefit they receive when they consume the good. The subsidy can be payed for by all those who receive the external benefits."

Households
:
Negative Externalities
- households that use chemicals that are harmful to the air can make the pollution problem worse. There are many companies that now sell chemicals that have recycled products and are less harmful to the environment, choosing those products over the products that are harmful to our environment make a change.
Positive Externalities
- households that recycle and conserve energy and use those chemicals that are harmless to the environment and convince their friends and family of how to better prevent air pollution are doing positive things to stop air pollution.

Business
:
Negative Externalities
- Air pollution causes health issues for employers and employees. When employees and employers are sick, they can't work.
Positive Externalities
- employees not getting sick and being able to work. This also builds human longevity and increases productivity.

Rest of the World
: Air pollution affects the rest of the because it affects humans, plants and animals. It affects the trees that we depend on for oxygen, it affects humans that we depend on to work and pay taxes and to lead the environment to a better place and affects the photosynthesis of plants that humans and animals sometimes depend on.
References
www.people.hofstra.edu
www.masterresources.org
http://economics.fundamentalfinance.com
Full transcript