Obviously, here an overallocation of fishing capital (high-tech fleets, fishing nets) are invested that created such negative externalities to the Ocean. As the population of fish dwindles, the food chain within the Ocean is disturbed and the whole sea-life is harmed by overfishing’s spillover costs. Another market failure associated is that high technology results in higher catches. As the product becomes less scarce, the price is lower and quantity demanded increases, and so many of something creates wasteful usage of fish.
It can be deduced that since the wide Ocean is public property, fishing companies are not willing to sacrifice its profits to sustain an area that does not belong to them. In other words, it is not willing to sacrifice the company’s costs by catching fewer fish with the same capital, therefore, it shifts this cost to the environment which takes the impact from overfishing.
Chinese government is introducing tariff on steel products and increasing the rate on other items in order to control negative externalites like trade surplus and energy consuption which will eventually lead to environmental pollution. However, companies in industries are claiming that the government should levy tariffs on those products and say governments are under pressure of E.U and the U.S.
This article discuss the negative externalities of our daily contact with canned food, plastic chair, etc. A study has shown that about 93% of Americans have bisphenol A in their body, a chemical found in almost everything including baby bottles and hiking containers. The fact that humans are relying more and more on manufactured products is suspected to be a contributor to obesity. Although containers might provide certain level of marginal benefit in our daily...