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6.03 How do Externalities affect me?

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Anaya Prado

on 15 September 2014

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Transcript of 6.03 How do Externalities affect me?

the government can enact more strict rules and regulations, for how and where businesses dump their pollutants. As well as enforce harsher consequences for those who don't follow.
Create organizations that both clean up polluted waters and teach others of the consequences of water pollution.
Give out research grants to groups who are searching for a way to either to better dispose all of the pollutants without harming the environment or/and groups searching search for ways to effectively clean/purify polluted waters
Tighter rules and regulations can be costly on both the government's part, and the corporation's, so they might not be in support of this option. However the largest resistance would come from the corporations themselves, because it's cheaper fro them to to just dump their waste into a lake or river than to have to pay to properly dispose of it.
The creation of environmental protection groups is the solution that has the least amount of opposition however there are many against this option because many people feel that the creation of these groups is just a waste of government money
The last solution has the most opposition, for it is costly and it is likely that their won't be any viable results for a long time, so this option is opposed by civilians, corporation, and governments alike
Businesses will charge more for their products because now they have to pay more money for the proper disposal of their waste due to stricter rules and regulations.This option can also lead to an increase in taxes(or debt) to pay for the enforcement of these new rules&regulations.
Creating organizations would initially cost the government money but in the long run it would create jobs leading to an increase in employment and of course economic growth.
This option is the most expensive so it would likely lead to an increase in taxes, but ultimately in the long run it would lead to a decrease in pollution, which would lead to an increase in tourism and property values, attributing to economic growth.
Individuals would be "given" a clean and healthy environment, in which they wouldn't have to worry of becoming ill due to pollution, and worry of losing their jobs due to it.
Businesses can earn an good reputation for being eco-friendly, they can also at times be payed by the government for doing so,
The government doesn't have to worry about the population falling ill, or an increase in unemployment, and this option would most likely lead to economic growth.
Assignment 6.03 by Anaya Prado
6.03 How do Externalities affect me?
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