In chapter 8, you learned market failure, and a variety of relevant environmental topics. Pick one...

In chapter 8, you learned market failure, and a variety of relevant environmental topics. Pick one environmental issue other than air pollution or emissions, that represents a positive or a negative environmental externality, and discuss how it could be internalized by government actions or market mechanism. Do not pick educational, political, social, and health-related topics. Also discuss biblical principles associated with your chosen topic

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Any thing which affect the third party who is not involved in a transaction can lead to positive or negative externality.

Suppose a person A buys flower pots from person B to decorate his house with it. He uses all the flower pots around his house which looks really beautiful. Person C walks through person A's house dailty for office and becomes happy after seeing the asethetic view of person A's house. person C is charmed by the rare and beautiful flowers and love watching the.

We can see that person A has created a positive externality in Person c's life by providing him aesthetic view everyday when he passes through his house.

Since it a positive externality there is not need for government to internalize it but yeas there will be some market mechanism like person C will buy those flower for his house and people looking person C's house will buy it for there house. This will have a ripple effect and the demand for plower pots will increase.

Rahul Sunny answered 1 year ago

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