Question

Describe the externalities associated with a football stadium compared with
an amusement park. Which would have greater positive externalities? Which
would have greater negative externalities?

Answer 1

Positive externalities of Football Stadium.

Any positive externalities created by the stadium could be discrete or related to proximity, such a ease of access and opportunities for parking revenue. Football stadium can become landmarks over time and generate pride of residents. Firms and households that have no direct connection to stadium see their incomes rise as a result of its construction.

Negative externalities of Football Stadium.

Potential negative externalities would include diminished view, traffic congestion, noise, loss of privacy and crime. Accordingly, the impact of a new stadium on house values is ambiguous ex ante, and is therefore a question to be resolved empirically.

Positive externalities of Amusement Park

An amusement park benefits the local government because people from all over the world come to shop and play so they lend them money. Therefore the local government could provide public goods or services to us(such as street lighting or even books for school) It raises the value of the houses in the area because it is next to the amusement park where children and families like to go during vacation or weekends so it becomes more valuable. It creates competition with other amusement parks such as Great America to create better rides or improve them which leads to better landscapes that also lead to the raising of property value. It also gives more jobs or labor for individuals and helps the unemployment rate go lower. If more people have jobs too, they will most likely want to improve their homes with the money they get from the job.

Negative Externalities of Amusement Park

There is also noise pollution with young adults that would be disruptive to it's neighbors and cause a disturbance around the area. Amusement parks attract a younger crowd of people which causes more irresponsibility and more littering. The more littering the more money it causes for the city to spend to pick it up. Parking would become an issue due to the fact there are many families at the park. This causes the area to be over crowded and decrease the rate of the value in the neighborhood/town. Everyone that lives around the surroundings will suffer from pollution of all the smoke and machines. Individuals would not want to live near a polluted environment. Concluding Paragraph After going through the negative and positive externalities, there were more cons than pros to building an amusement park in the local area because of the worth and it was too much to risk. The proposal of building an amusement park within the local area causes more chaos and disruption in the area than positive ones. Most of the negative externalities created costs for people who weren't involved in the orginal economic activity. Weather would cause a great affect on the park due to the fact the fog, people would not want to be in cold weather at an amusement park.

1. A conclusion can be drawn from this that football stadium has greater positive externality whikle amusement park has greater negative externality.