Negative Externality Case

Air pollution may be caused by factories, which release harmful gases to the atmosphere. Some of the gases include carbon monoxide and carbon dioxide. The destructive gases cause damage to crops, buildings, and human health. The high concentration of greenhouse gases in the atmosphere affects the global climate and brings about extreme heat waves, rising sea levels, intense hurricanes, graded air quality, and droughts. The release of toxic gases into the atmosphere adversely affects vulnerable populations such as children, the elderly, and patients suffering from asthma and heart diseases.

1. Show good statistics for the negative externality case above

2. List a policy/policies implemented for air pollution and if they have had any impact on air pollution.

3. Please explain the negative externality and how it applies to the course of economics.

Please cite at least three sources.