The pots and plants that your neighbors placed outside the corridor is one negative externality. This is because; there are chances that your neighbors might forget to clear the water and leaving them to turn stagnant. Or they might have stagnant water present in their houses too. We are aware that stagnant water is the best condition for Aedes mosquitoes to breed. The more they breed, the more possibility that there will be more Aedes mosquitoes biting us. Aedes mosquitoes can cause Dengue fever and might lead to death if serious. It is also a fact that there is no cure to serious Dengue cases.

This creates a negative impact or external cost on people living in that area. People who are diagnosed with Dengue fever must be under close monitoring during the critical period of a week. Dengue is also contagious. In such cases, opportunity cost would be incurred such as causing the patients to miss school or work. Also, they must spend money seeking for medical help. The neighbors who are responsible do not share the cost of the medical bills or the patient’s opportunity cost at all. In worse scenarios, they do not share the cost of losing one’s love. If many people are contracted with Dengue due to the negligence of neighbors, there will be higher demand in medical help. These are extra costs that they must fork out themselves even though they were not the ones responsible.

However, this problem can be solved if everyone is willing to spend one minute of their time every few day to check and clear stagnant water in their houses or along the corridors. This simple action will not cost anything but might help save lives.

By Cynthia

Labels: externality

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