Possible Solutions/Positive&Negative Externalities

Give three possible solutions to the economic issue you are investigating.
Three possible solutions to the issue of littering would be to enforce the “no littering” law more strictly, inform people about the health issues, and try to get volunteer organizations to clean up trash.

What are the externalities, both positive, and negative, that could result from each possible solution?

Solution 1: On the positive side, if the “no littering” laws are enforced in a harsher way, people would become more cautious and throw away their trash because they don’t want to be charged with a fine; however, this could cause people to rebel because they don’t think it’s fair and they could end up polluting the area even more.

Solution 2: On the positive side, if people are informed about the health issues of littering, this could cause them to really think about how it could affect them and their loved ones. No one wants to live in fear of knowing your life could be affected because people are too lazy to throw trash away; however, people might not want to sit and listen to someone talk about how littering is bad. They may feel like it inconveniences them and takes up their time. Also, they might not believe what they’re being told is true.

Solution 3: On the positive side, the environment would be much cleaner with everyone cleaning up the streets and the area where they live. It would help reduce the health risks and benefit the people, businesses, and government as well; however, it would also take the volunteers’ free time for them to go out and clean up trash. They might have to give up time and really dedicate themselves the get the job done. Some people might be too lazy to do that.

What positive or negative externalities does this issue present at each sector of the economy?

Littering does not have any positive externalities for any sector of the economy. On the household level and local residents, littering creates a negative impact on how they’re living. The people living in the trash will start to have health problems and no one will want to live there. On the business level, many businesses lose money due to litter because no one wants to go to a place that’s filthy where it looks like they don’t clean their stores. This will cause a loss of customers and could possibly make them go out of business. On the government level, they will have to help pay for cleanup of all the trash to keep the economy clean. Also, if the area is polluted with trash, tourists are not going to want to visit because they want somewhere nice that doesn’t look like a dump. Without tourists visiting, the government will lose money and the economy will end up suffering as well. This affects the rest of the world because litter travels by wind and in the ocean, which means it’s everywhere. With all the litter spreading around, peoples’ health is going to worsen. Lastly, it negatively affects resources, goods and services, and finances. The United States has a huge agricultural industry and if it is polluted by litter, these goods cannot be traded or sold, causing a loss in money and products.

All of the possible solutions meet my criteria to help abolish littering. Each of these could help in some way and make a huge difference in the way we live. All of the solutions would be low budget and it’s all based on volunteers helping out. No matter which solution goes into play, it would help the health of people, our economy, and our world as a whole.