Economics: Negative Production and Consumption Externalities Essay Example
Describe and evaluate economic policy measures that can be used to reduce negative consumption and negative production externalities.
Economic policy making is often a field of government decision-making or academia that is regularly filled with confusing terminology and definitions to the average person and thus somewhat confusing, this article looks at two of these such terms; ‘negative production externalities and negative consumption externalities’ and attempts to dissect their nature and makeup to some degree. However, before one can start down this pathway and examine, expand and evaluate two of the important economic policy options available in regards to understanding and influencing ‘negative production and consumption externalities’ one must first make an effort to explain what these two economic and trade terms actually mean in both policy language and real world terminology.
According to one leading academic source, the University of Berkley department of Environmental Economics and Policy ; ‘Negative Production Externalities’ can be defined as: the production activities of one individual or organization that causes the imposition of cost/benefits on other individuals that are not transmitted accurately through the market at large. While the term ‘Negative Consumption Externalities’ is defined as being; the consumption activities of one individual or entity that causes the imposing of cost/benefits onto other individuals that are not correctly shown within the market, both these definitions are also settled upon within text books such as ‘Economics 4th Edition ’.
Now that a clear concise economic definition has been given for both of these important terms, it obviously worthwhile to expand upon these definitions and provide examples in a real-world sense, which will enable a more competent level of understanding, for those reading this paper. ‘Production and Consumption Externalities’ often include events and situations, arising from ‘market
Economic policy making is often a field of government decision-making or academia that is regularly filled with confusing terminology and definitions to the average person and thus somewhat confusing, this article looks at two of these such terms; ‘negative production externalities and negative consumption externalities’ and attempts to dissect their nature and makeup to some degree. However, before one can start down this pathway and examine, expand and evaluate two of the important economic policy options available in regards to understanding and influencing ‘negative production and consumption externalities’ one must first make an effort to explain what these two economic and trade terms actually mean in both policy language and real world terminology.
According to one leading academic source, the University of Berkley department of Environmental Economics and Policy ; ‘Negative Production Externalities’ can be defined as: the production activities of one individual or organization that causes the imposition of cost/benefits on other individuals that are not transmitted accurately through the market at large. While the term ‘Negative Consumption Externalities’ is defined as being; the consumption activities of one individual or entity that causes the imposing of cost/benefits onto other individuals that are not correctly shown within the market, both these definitions are also settled upon within text books such as ‘Economics 4th Edition ’.
Now that a clear concise economic definition has been given for both of these important terms, it obviously worthwhile to expand upon these definitions and provide examples in a real-world sense, which will enable a more competent level of understanding, for those reading this paper. ‘Production and Consumption Externalities’ often include events and situations, arising from ‘market