Externalities & Pollution

Not in my backyard
Not in my backyard

Externalities, or the effect of economic activity on a third party, can lead to undesirable consequences like pollution. Oil spills, like the one caused by British Petroleum in the Gulf of Mexico in 2010, are a prime example. Even though BP and its customers each benefit from the production of oil, others along the Gulf coast had their lives severely disrupted.

Real World Examples

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