Economics Externalities Questions
Externalities can have both positive and negative impacts on the environment. Negative externalities, such as pollution from industrial activities or deforestation, can harm the environment by degrading air, water, and soil quality, disrupting ecosystems, and contributing to climate change. These negative externalities often result from the overuse or misuse of natural resources and can lead to long-term environmental damage. On the other hand, positive externalities, such as investments in renewable energy or conservation efforts, can benefit the environment by promoting sustainability, reducing pollution, and preserving natural habitats. Overall, externalities play a significant role in shaping the environmental outcomes and sustainability of economic activities.