Friday, May 1, 2009
externalities
Externalities are external costs or benefits of an activity that falls on or is received by the people other than those who pursue the activity. There are various externalities in this small nation of ours be it negative or positive externality. One such externality would be the Sumatra fires that spread to our little nation.
During the May-October dry season, a lot of farmers set fires through Indonesia’s tropical forests. These is done to clear land for crops or plantations or to set for logging. However, these flames which are rich in biomass produce intensely smoky fires that spread across to other nations such as Singapore and Malaysia.
Although we do not cause these fires, they have created smoggy skies in Singapore. This is a negative externality as we are suffering the consequences of having smoggy skies without paying for it. It causes health problems to our civilians as there is too much pollution in the air which can actually clog up our lungs. People have to start wearing masks so as to protect themselves from the polluted air which is indeed a hassle to us all.
We are bearing the costs of having to endure the effects of these forest fires without having being the cause of it. Measures are being taken in both Indonesia and Singapore to try to reduce these forest fires so as to reduce the damage done to its state as well as neighboring states like us.
Done by Prasana
Labels: externality
We Loved10:55 PM
April 2008