Blog
Unit 1 Micro: Video Clips on Negative Production Externalities
29th December 2011
This blog entry provides a variety of news video clips illustrating examples of negative externalities from production.
• Externalities are third party effects arising from production and consumption of goods and services for which no appropriate compensation is paid.
• Externalities occur outside of the market i.e. they affect people not directly involved in the production and/or consumption of a good or service. They are also known as spill-over effects.
• Economic activity creates spill over benefits and spill over costs – with negative externalities we focus on the spill over costs
Video Clips
Hungary town still shaken by toxic sludge (October 2011)
Nepal deforestation highlights clashing interests (April 2011)
Oil giant Chevron fined for Ecuador pollution (February 2011)
143 killed by alcohol poisoning in India
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.