Negative externalities happen when people's actions or business activities cause problems for others. These problems often don't show up in prices, meaning people don't pay for the damage they cause. This can be a big issue for our environment. Here’s how:
Pollution: For example, when factories pollute the air, it can cause health issues for people and harm the environment. In 2016, the World Health Organization (WHO) said that outdoor air pollution led to about 4.2 million deaths worldwide. The extra costs from this pollution, like healthcare bills and lost work time, add up to around $5 trillion every year.
Resource Depletion: When we take too many natural resources from the Earth, it can lead to big problems for the future. The Global Footprint Network shares that we are using the resources of 1.7 Earths each year. This way of living can make resources scarce and hurt ecosystems, wildlife, and the economy in the long run.
Climate Change: Burning fossil fuels releases greenhouse gases. According to the Intergovernmental Panel on Climate Change (IPCC), if we keep this up, the Earth's temperature could rise by 1.5°C by 2030. The costs of climate change, like damage from severe weather, could reach up to $23 trillion each year by 2050.
In short, negative externalities create extra costs for society and harm the environment. This leads to less sustainability and higher costs for the future.
Negative externalities happen when people's actions or business activities cause problems for others. These problems often don't show up in prices, meaning people don't pay for the damage they cause. This can be a big issue for our environment. Here’s how:
Pollution: For example, when factories pollute the air, it can cause health issues for people and harm the environment. In 2016, the World Health Organization (WHO) said that outdoor air pollution led to about 4.2 million deaths worldwide. The extra costs from this pollution, like healthcare bills and lost work time, add up to around $5 trillion every year.
Resource Depletion: When we take too many natural resources from the Earth, it can lead to big problems for the future. The Global Footprint Network shares that we are using the resources of 1.7 Earths each year. This way of living can make resources scarce and hurt ecosystems, wildlife, and the economy in the long run.
Climate Change: Burning fossil fuels releases greenhouse gases. According to the Intergovernmental Panel on Climate Change (IPCC), if we keep this up, the Earth's temperature could rise by 1.5°C by 2030. The costs of climate change, like damage from severe weather, could reach up to $23 trillion each year by 2050.
In short, negative externalities create extra costs for society and harm the environment. This leads to less sustainability and higher costs for the future.