State and explain two ways in which domestic fuel consumption gives rise to negative externalities.
- Emissions from power stations cause healthcare costs to local residents.2) Pollutants cause increasing health costs which the taxpayer has to meet(A negative externality is a spillover cost affecting third parties)
AE
Related Economics A Level answers
All answers ▸Define the term ‘subsidies’ .
How can taxes reduce the effect of negative externalities?
Explain why a rise in investment should help to increase the rate of growth of the UK economy
Evaluate the micro and macroeconomic effects of the UK leaving the EU Single Market.