First let’s define externality Essay

As an example of the above definitionPollution from a doery privy affect the health of nearby residents negative The same factory weed provide jobs to nearby residents positiveNegative externality is two trip production and consumption. I will be using both these externalities in my following discussion on pollution.Companies pollute on three unalike platforms air, water and land. Air pollution is caused byFactoriesPower plantsVehiclesSolventsDomestic/industrial chemicalsMilitaryNatural causes volcano, wildfires(ref aboutairpollution.co.za)Water pollution is caused byUrbanizationo orbit insane from constructionoChemical pollution from mines, industries, etcoInadequate sewer 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 sooner of being treated properly S anitary/hazardous landfill seepage Cemeteries toss out 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 plant negative externality. The above causes of pollution serve as a glum reminder of the visible and mostly invisible effect on the consumers. And it for sure is not figure into the economy.The costs and benefits of pollution can be calculated by economists but this will not pull down its feign, merely factor into the cost of production of goods.What will impact on the economy is the consume for pollution free funding and the purchasing decision that will allow in this. The following few examples come from my own commons list diesel engine instead of petrolSwitching of unnecessary electricity sourcesOrganic foods inwardly my budgetNo smokingLiving in a bifoliate suburbA lot of South Africans (and world) citizens are making informed buying decisions to reduc e the effects of global warming and the depletion of the ozone layer. The costs of living green is higher 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 home(prenominal) pollutants such as cigarettes, solvents, etc Pollution tax for industriesPollution limits on emissions revolve around on residential and business zoning and the effect on the meet 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 spherical and South African Perspectives, Michael Parkin )