Positive and negative externalities Research Paper - 1

Positive and negative externalities - Research Paper Example It will also highlight solutions to mitigate these externalities. It will finally analyze the different stakeholders involved in the externalities and their role regarding the externality There are negative externalities related to environmental consequences. An example of a negative externality with environmental consequences is pollution. There are different forms of pollution; air, water and noise. Air pollution has public health implications, and causes damage to buildings and crops. Water pollution has the potential to cause harm to humans, plants and animals. Noise pollution on the other hand might cause disruptions, both mentally and psychologically, to people and animals. Public goods are an example of a positive externality. These are goods whose benefits people cannot be excluded from enjoying. Public goods include clean water, public defense, law enforcement, social amenities and so on. These goods are accessible to most people in the society (Tulkens & Chander, 2006). If businesses start accepting payments online for the services and goods they offer, these actions can lead to a negative externality. This means that clients no longer need to buy paper cheques in order to pay, a situation which means that cheque printing firms will lose revenues. This can also result into unemployment especially for employees charge with the role of processing cheques. In the course of the operation of a company, there are byproducts created. These by products make their way into the environment and cause pollution. Air pollution results from the burning of fossil fuels in industries. Water pollution occurs when industrial wastes are deposited into water sources. Noise pollution occurs in situations where the production process emits destructive sounds that get into the atmosphere. Public goods exist for the satisfaction of the needs of the entire society. These goods exist so that everyone in the society can benefit from them. If such goods did not