Sunday, February 2, 2020

Oil Spills and Negative Externalities

Image result for deepwater horizon

April 20, 2010. The BP’s oil drill exploded, leading to the pollution of the gulf. One of the largest environmental disasters seen by the U.S, Deepwater Horizon and the accident that occured has left its mark on the world. From an economic standpoint, the vast environmental risks taken through drilling did not beat the marginal benefits of opprotunity. The economic benefits that come from oil drilling help the economy in many ways without a doubt. However, when the explosion occurred, the BP was certainly not the one that met direct suffering. 

The economy was greatly impacted as the fishing injury met with polluted seas and dying fish. Marine wildlife were dying and getting sick, infecting the entire food chain, damaging ecosystems. These spills also have damaging effects on human health. The humans, animals, and other wildlife impacted by these oil spills had no part in the oil drilling. This is called a negative externality, a third party being negatively impacted. This is a common occurrence in the economy as corporations fail to consider, or consider but ignore, the risks of negative impacts associated with their possible gains. 

Works Cited
https://response.restoration.noaa.gov/oil-and-chemical-spills/oil-spills/how-oil-harms-animals-and-plants-marine-environments.html

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