Negative externalities

Topic Page

Questions

• Why is it possible that negative externalities lead to inefficient overproduction?
• What is a negative externalite?
• Does the existence of externalities indicate a market failure?
• How can a situation like the tragedy of the commons be corrected?
• Why can requiring payment for use of public services and goods prevent a tragedy of the commons?
• Why are negative externalities bad?
• What leads to negative externalities?
• Are negative externalities necessarily intentional?
• What is the definition of an externality?
• How can an externality be negative?
• How does fracking create negative externalities?