Instructions: Your assignment must have introduction, conclusions, and references. (Harvard style of referencing). Topic: Externalities The South African Weather Service (SAWS) Amendment Bill, which was gazette in September 2011 has added a new weapon to the arsenal of those agencies tasked with enforcing South Africa's environmental legislation and has the potential to expose transgressions by polluters. The legislation extends the aim and functions of the SAWS to deal with ambient air quality information services, ultimately tasking the state meteorological service with the role of pollution forecaster. Linked to the National Air Quality Indicator, it will assist in tracking air quality trends on a local, regional, and national scale, assessing whether general air quality in South Africa is improving. Air quality monitoring information helps to assess the efficacy of interventions aimed at abating air pollution. If the status of air quality does not improve, or it worsens, this may indicate that interventions are not being implemented or are being incorrectly implemented. Hence, such an assessment can aid enforcement of correct abatement measures. This information will help the Department of Environmental Affairs (DEA)to identify air quality hot spots and make the necessary interventions to point large emitters towards compliance with air quality standards over time and achieve continuous improvement in environmental quality. It will be a tool for setting compliance targets for those who do not comply with the overall aim of meeting the right of every individual to an environment not harmful to their health, enshrined in the Constitution. The Atmospheric Emission License and the Atmospheric Emission and Greenhouse-Gas Inventory module of the SAAQIS are tools through which the DEA will enforce the pollution pays principle. Questions. 1.Give three reasons for government intervention in the economy.6marrks 2. What type of Externality is represented in the case study?.6marks 3. Explain two economic benefits of improving air quality in South Africa.4marks 4.Draw a graph that represent the production activity of a coal mine in Mpumalanga, and where the air pollution analysed is in the form of coal dust. Use hypothetical figures to explain your graph.10marks 5.Explain Coase Theorem in detail. 4 6.Describe in detail the externality that arises from a plastic bag.6 7. Do you think it is the right thing to do to charge industries that pollute the air? Explain.5