According to economic theory, an externality is a market failure because all costs are not fully considered in a private transaction. Watch these two TEDTalks about the cost of negative externalities and answer the following questions.
What do you think about the different approaches to “internalizing” the cost of the externalities? Do you think they are feasible? Do you think there will be support for the various approaches from the public, politicians and firms? Why or why not? Should we be concerned about these costs as consumers and as citizens? [In your response, be sure to mention points made by both speakers to show that you have watched both videos.]
TEDTalks: Pavan Sukhdev—Put a Value on Nature!
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