Positive and negative externalities have major effects on the marketplace. Externalities, positive and negative, can be seen every day but, most people don’t consider their implications. This diagnostic question shall address some externalities that can be seen in the New River Valley or Allegheny County area and how various market failures exist.
Virginia Tech is a positive externality on the new river valley area. The university enrolls students, employs individuals, and conducts various forms of research. The existence of this University is a positive externality for it inflates the population of the New River Valley area by over thirty thousand individuals for 9 months out of the year. This inflated population allows businesses to thrive in the area. If Virginia Tech closed down, it could be theorized that the New River Valley area would suffer due
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Westvaco is a paper mill which produces a great deal airborne waste which can be smelled, and seen anywhere within the city. Sediment from Westvaco airborne waste can be seen on the rooftops of homes throughout town. Further, Westvaco also produced waste that is dumped into the Jackson River. This waste has introduced pentachlorophenol (PCPs) in the Jackson River which turns into the James River which runs throughout Virginia. These PCPs affect the health of fish in the entire river which also has caused the Commonwealth of Virginia to issue a warning on the consumption of fish in the James and Jackson rivers. This externality affects fisherman throughout the commonwealth who are not able to eat the fish they catch in the Jackson and James rivers. Further, this externality affects residents within the city of Covington. Although there is no scientific proof to support this theory but, the airborne chemicals expelled from Westvaco cannot be health to the human body and could have significant side effects in the long
...derstanding the multifaceted concepts behind the market can prove to be a beneficial endeavor. The ability to identify and apply economic ideas can thoroughly broaden the scope of consumer awareness. After all, economics is all around us!
Most of the rivers are the one being used by large communities like drinking water supply and for the farmers in their produce. The State of Department put together a commission of knowledgeable people and carried out an investigation about the risk and consequences of this project. Some of the conclusion about the spills were, for example, that: “A million of gallons of tar soil war poured into the Kalamazoo River in Michigan… 40 miles of this river still are contaminated to this day”. Another example of spills affecting communities, is the one in 2013, caused by a twenty foot crack in a pipeline, causing a huge spill of oil, damaging the residential neighborhoods and the Lake Conway in Arkansas. This spills and oil “accidents” are affecting not only the lives of people but also the wildlife, the ecosystems and the quality of air and water
This study analyses the controversy that has existed within general electric (GE). This is a company that has been running the electrical equipment plants. The company has been dumping wastes into Hudson River. The case involves recovery battle and the plight of dumping the Polychlorinated Biphenyls (PCBs) into the Hudson River in New York, which had accumulated to more than 1.3 million pounds into a 40 mile stretch of the Hudson River. The cleanup programs supported by EPA, most of the environmental groups and some government agencies led to a lot of controversies since GE was not ready to take responsibility for the dredging expenses and even after their little cooperation, the dredging process is never complete.
This article discusses the issue of negative externalities of consumption. A negative externality of consumption is an externality caused due to the consumption of a good or service, adversely affecting a third party.
“Don’t waste that water! Kids in Africa don’t even have water to drink!” Almost every American has heard this saying before. We have heard this because there are water shortages in third world countries like Africa, as seen in the movie “Blue Gold”. But why have we developed this notion that there are only water shortages in third world countries? When in reality, there is a shortage of water right here in our home country. The Colorado River’s water is high in demand as it serves millions of people, powers industries, and is home to all different kinds of wildlife. The Colorado River will not be able to keep up with the increasing demand of water and soon enough the river will go dry. Organizations like the Colorado River Water Users Association are trying to change the way that the water is used and adjust how it is managed. The Colorado River is drying up and the western states are running out of water, however, public policy is trying to regulate and preserve the Colorado River to make it more sustainable in the future.
The Danieley River in McMichael, North Carolina has recently become polluted due to the large amounts of industrial factories in the area surrounding the river. The Danieley River in the past has been polluted, causing fish to become sick in the salt water aquarium that had been installed on top of the river, using river water. The pollution in the river could have come from any number of potential industries, and we were tasked with finding out which industries were causing the pollution in the Danieley River.
On January 9th, 2014, it was reported that a chemical spill has occurred from a storage tank owned by Freedom Industries. The spill occurred on the banks of Elk River in West Virginia, leaving hundreds of thousands of people without tap water. The company first reported that 7500 gallons of the chemicals had spilled into the river through a one-inch whole but had found that two weeks later, there was an estimated 10000 gallons of the toxic chemical in the river. The chemicals released include 4-methylcyclohexane (MCHM) and PPH. Methylcyclohexane is a chemical that is used in coal to reduce the amount of ash it produces(Field & Catherine, 2014). The West Virginia Department of Environmental Protection are still calculating the exact amount of how much of the chemicals were spilled.
enterprise lie on every side; farmers find no markets for their produce; the savings of many years
Then the documentary tackles Puget Sound. The Duwamish River is the largest hot spot in the nation. In 2001, the Duwamish River was classified as a “Super Fund” site. This is given to a site that will receive federal assistance for clean up. But yet, it may be too late. Puget Sound in contaminated with PCP, lead and mercury. The threat comes from the giant industrial polluters of old and from chemicals in consumers’ face creams, deodorants, prescription medicines and household cleaners that find their way into sewers, storm drains, eventually into America’s waterways and drinking water.
One of the key factors of Richmond, Virginia is the James River. The James River has been a part of Virginia’s history from way before the first settlers, and before it was even Virginia, up until present day. A problem the James River has faced is that some businesses abused it. Back then, the manufacturing plants on the James did not care or realize the harm that occurs when they persistently dumped waste into the James. Since the James is such a huge factor in Richmond, it is imperative to keep it clean and healthy. All that the James has provided us with, it isn’t fair the way it has been treated in the past.
External stakeholders that are affected in some way from the decisions of the business include customers, suppliers, community, trade unions, and the government. Customers may chose not to purchase ...
Businesses prospered near the late nineteenth century. Many monopolies, centralized banks, and trust were produced due to this industrialization rush. Standard Oil company, Carnegie Steel company and other large vicious companies dominated not only laborers and farmers, but the governors and their regulations. There was a deep strive for efficiency and effectively making a profit only to their benefit, leaving other classes to fall apart. Farmers were the most endangered group of citizens. These businesses and corporations found ways to manipulate the government ridding of competition for farmers. Farmers feared for their production and consumer production. With the lack of competition and prices of their products through the roof, consumer will not be able to purchase items and farmers will not make a profit from what th...
Externalities are considered to be any impact on people who are not involved in an economic transaction. Externalities can be positive or negative. In the healthcare industry, there are positive and negative externalities due to the care that’s provided to other people. The people who are not directly involved in the treatment benefit from others being healthy because it decreases the chance of them catching the same illness. This is one of the many positive externalities that exist from others receiving health care services.
Pollution of NC Water and Air Reported by Media. Riverlaw Blog, 10 Sept. 2011. Web. 9
Externalities are defined as positive or negative impacts and consequences that non-related parties face due to an economic activity in a compact and comprehensive manner. The nature of the externality can be determined by the nature of activity and the consequences that third parties face. Negative externalities distort the market in various manner for example the polluters make decisions only on the direct costs and they never consider indirect costs and as a result because the polluter is not bearing the indirect costs these costs are not translated at the user end and as a result the total cost of production becomes way higher than private costs and thus it distorts the free market mechanism. One of the realistic solution to counter the