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Negative Externalities - Peruvian Fish Industry causes a stink

Graham Watson

23rd January 2022

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A good introduction here to negative production externalities, with the fishmeal industry in the Peruvian coastal town of Chimbote, responsible for air and marine pollution.

The effects of this are worsening healthcare outcomes for the local population and fewer jobs for local fishermen, who are being driven out of business by overfishing.

Check out our revision video on how to show the social welfare loss when there are negative externalities from production.

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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