This website uses cookies to ensure you have the best experience. Learn more

Describe And Evaluate Economic Measures That Can Be Used To Reduce Negative Consumption And Negative Production Externalities ...

1517 words - 6 pages

i Externalities are costs or benefits of production or consumption experienced by the society who are not directly involved or had not paid for it. It is sometimes referred to as 'spillover' or 'third-party' costs or benefits. (Sloman & Norris 2002, p567) A benefit experienced by the society or third-party who are not directly involved when a product or service is consumed or produced by a person or a firm is known as a positive externality. Examples of positive production and consumption externalities are education, health provision, vaccination and researching of new technologies.Negative consumption externalities occur when the costs of consumption is borne by other people other than the consumer. (Sloman & Norris 2002, p271) The society would then prefer lesser of these kinds of goods and services to be consumed. Examples of negative consumption externalities are negative externalities created by smoking and alcohol abuse, pollution from cars and motorbikes, vandalism of public property, illegal racers and litter on street and public places. (Margetts)To decrease negative consumption externalities, the government could increase the taxes or excise imposed on these goods or services. (Hall 1996) Increasing the taxes on these goods or services would cause the price to rise. This would then discourage the consumers from buying it or decrease the amount which they would or could buy. With the increase in taxes, there would be more revenue for the government to spend on. However, this might affect other consumers and certain firms in the industry. For example, if there was an increase of taxes imposed on alcohol, it would affect the wine industry and lessen their revenue. It would also affect the people who drinks only moderately and who had not caused any problems to the society. Increasing taxes on the goods does not necessary mean that people would immediately stop and decrease consumption. They might just continue consuming these goods or services. It would also be difficult for the government to decide on the amount of taxes to increase so that it would not cause uproar among the people.The government or private charitable organizations could provide information about the bad effects of the product or service and try to persuade the consumers to stop consuming the goods. There might be people who do not know about the harmful effects of the good or service and that is why they never stop. The government and private charitable organizations could provide information on newspapers, television, through campaigns or seminars about the goods or services and how it affects the consumers themselves and the public. This might encourage people to stop consuming these goods or services if they know the bad effects of it. However, the government and private charitable organizations might have to spend a lot of money organising these services to the people and not everyone might get the message. The private charitable organizations might not be...

Find Another Essay On Describe and evaluate economic measures that can be used to reduce negative consumption and negative production externalities ...

Negative Externalities of the Standardized Test

771 words - 4 pages test anxiety and scores very low on the standardized test. Therefore, he will not be able to get accepted by the major Universities due to his low scores. Many students feel stressed out when having to take standardized testing. According to Kaplan, colleges are relying too much on the SAT and ACT. They are using a long test that becomes equally weighted to years of school. That seems to be a little lopsided. A student can do well through out

Describe your beliefs about the Euro, both positive and negative

1247 words - 5 pages has been introduced to different countries, Britain can step back and look at the result. The Labour Party seem to have a clear idea of which direction they would like to head in regards to the Euro. They set up "The Five Tests" which is basically five conditions that the Euro must comply with before Britain decides to join. It is likely that a referendum will be held to find out that the British Public think of this issue.One main reason for

Can Violent and Derogatory Song Lyrics Cause Negative Emotions?

2572 words - 10 pages to your favorite songs and watch your favorite movies, just remember to be cautious of the influence you will let these have not only on your lifestyle, but on the crime that is being portrayed. Works Cited Giovacchini, Anthony M. "The Negative Influence of Gangster Rap And What Can Be Done About It." Poverty & Prejudice: Media and Race, 4 June 1999. Web. 14 Apr. 2014 Hong, Hana. “Effect of Movies on Teens.” Personal interview. 15 October

Organizational Power and Politics discusses Power coupled with Politics, Positive Tools used and negative tools used

585 words - 2 pages the methods used to get the effort done. This thesis defines power coupled with politics and examines how one can use both to influence his or her workforce in a positive way, thus resulting in gain or in a negative, corruptive way, which ultimately leads to the destruction of an organization.Power coupled with PoliticsPower and politics, though directly correlated, share similarities and differences but eventually perform collectively for the

The Postive and Negative Effects That Are Caused by Tourism!

810 words - 4 pages positive and a negative effect, but what tourism creates for communities around the world are jobs, so that the economy can stay secure and to avoid turbulent to continue to build mini businesses that are very important to developing areas that are in need for the money to improve and make extra tax (Simm 1). Now the negative effects of tourism to the economy can be very indiscriminate because of all of the construction to build a paradise

Negative Consumer Behavior What is negative consumer behavior and what are the characteristics of a bad customer? How can managers address this issue to ensure success?

1500 words - 6 pages reflected a distinct consumption ethic based upon affluence and gratification of desires through material acquisition" (Berkman and Gilson, 1981). Consumer Behavior is defined as "the activities of people engaged in actual or potential use of market items-whether products, services, retail environments, or ideas" (Berkman and Gilson, 1981). Thus, there are unlimited types of behaviors that the consumers can exhibit making it difficult to distinguish

The Negative Effects of Alcohol Consumption

1907 words - 8 pages properly. It can be argued that a straightforward link between consuming alcohol and crime cannot be established as (Collins 1981) suggests that alcohol should not be referred to as the cause of crime as the evidence is of inconsistent nature. Rumgay, (1998) stated that the repeated finding of an association between alcohol consumption and a problematic event explains very little about the relationship between the two phenomena. Dingwall (2006

What can be done to change the negative reputation of skateboarders?

3071 words - 12 pages police. I also find it interesting how back in the 60's and what not they could skateboard anywhere, yet there were not that many skateboarders. But now when there are so much more people skateboarding they confine us to skateparks which are few and far between, plus some cost money, and you can still get arrested at parks for not wearing helmets and what not. By the mid 1960's Skateboarders took a huge step in the sport and moved into empty pools

Negative Effects of Fast Food Consumption

1013 words - 4 pages , I find other reasons to be highly important too. Fast food consumption can have negative effects on students’ behavior. Detrimental or aggressive conduct, poor academic performance, hyperactivity and learning disabilities are some of the results of feasting upon junk food. Due to deficiencies in the B vitamins, zinc, iron and proteins, it has been showed that kids who regularly ingest these meals may increase their aggressiveness levels. As

Three Ways that a Manager can Cope with Negative Emotions

2077 words - 8 pages Three Ways that a Manager can Cope with Negative Emotions After an employee layoff, a manager can expect that that remaining employees will show signs of signs of distrust towards management, feel anxiety, and their productivity may decrease. Following a layoff, management should communicate individually with their staff and share that they are valued employees. Explain to them why and how they are valued; tell them what you feel they

Evaluate the view that the only way to reduce the UK’s growing obesity problem is to introduce a tax on fatty and sugary foods

1141 words - 5 pages because people seem to consume them despite of all attempts to prohibit the consumption of them. It is for these reasons that I believe that people, regardless of their weight will still be buying fatty foods. So government will be making most of the profits. Is this really the best option? Income elasticity of demand measures the relationship between a change in quantity demanded and a change in income. Fatty foods are normally thought as demerit

Similar Essays

Negative Externalities Of Consumption Essay

745 words - 3 pages gained by the government and “may be used to correct some of the negative externalities caused by smoking”. However, because of the inelastic demand for cigarettes, imposing taxes may not be successful. Works Cited

How Economic Growth Measurements Lead To Negative Externalities

1098 words - 5 pages Introduction Excessive drive for economic growth leads to negative externalities. According to (Mankiw at el, 2011.no199), a negative externality is an impact on the bystander that is adverse. There are two types of negative externalities namely negative production externalities and negative consumption externalities. According to ( Perkins at el,2012,no 46-47),negative production externality occurs when a firm’s reduces the well-being of other

Population Control In India This Essay Explores The Negative Impacts Of Population Control And How Alternative Measures Can Be Set Up To Prevent This

1255 words - 5 pages geography in which they live. So it is quite clear that educating the public about this matter is more of a way that would change the public statehood. Teaching the population on prevention of unsafe sex and putting forward the encouragement to use contraceptive methods will help.By educating the public the government of India can find many positives than negatives. They will be able to get out of the controversial issue of abortion. India is made up of

Describe The Evidence That Exists To Show Both Positive And Negative Sea Level Change? (13)

535 words - 2 pages There is much evidence that exists to suggest both positive and negative sea level change, geographical features such as rias, fjords, raised beaches and other features of emergence all are key evidence in exploring sea level change in historic times.Ria is a Spanish word that means river mouth, and is used as a geographical term because of the many examples of rias on the coast of Galicia e.g. Ria de Pontevedra. They are formed by the drowning