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6.03 Research Econ
Transcript of 6.03 Research Econ
There are four different sectors of air pollution, there's government, households, businesses and the rest of the world.
-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."
"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 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.
- 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.
- Air pollution causes health issues for employers and employees. When employees and employers are sick, they can't work.
- 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.