Externalities

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Externalities

Externalities are spill-over effects from production and/or consumption for which no appropriate compensation is paid to one or more third parties affected

Key Point: Externalities lie outside the initial market transaction and (without state intervention), they are not reflected in the market price

In the News Teaching Activity – Should UK data centres be allowed to be run on gas? (May 2026)

28th May 2026
Micro Case Study: London's Housing Market

Topical case studies
In the News Teaching Activity – Why have ads for junk foods been banned? (Jan 2026)

12th January 2026
In the News Teaching Activity – Could rare earths help China ‘win’ the trade war? (Oct 2025)

23rd October 2025
In the News Teaching Activity – is New York City’s congestion charge working? (Feb 2025)

27th February 2025
Tourist Taxes: Smart Policy or Costly Mistake?

22nd January 2025
Vape Ban: England Takes Aim at Disposable Culture to Save Environment and Public Health

25th October 2024
What are Externalities?

Topic Videos
Introduction to Market Failure

Study Notes
In the News Teaching Activity – the online gambling industry’s impact on the economy (Sept 2024)

16th September 2024
Behind the Counter: Should Vapes Be Hidden Like Cigarettes?

28th August 2024
Venice introduces peak-time tourist tax for access to the city

26th April 2024
Will the UK government introduce a vape tax?

27th February 2024
Government Intervention - Price Cap for Online Slot Machines to be cut

22nd February 2024
Externalities - Dealing with the Mountain of Waste on Everest

10th February 2024
Disposable vapes to be banned for children's health

30th January 2024
New Kahoot Quizzes on Market Failure

13th December 2023
1.3.2 Externalities (Edexcel)

Study Notes
4.1.8.4 Positive and Negative Externalities (AQA A Level Economics Teaching Powerpoint)

Teaching PowerPoints
1.3.2 Externalities and Government Intervention (Edexcel A-Level Economics Teaching PowerPoint)

Teaching PowerPoints
1.3.2 Externalities and Market Failure (Edexcel A-Level Economics Teaching PowerPoint)

Teaching PowerPoints
Pigouvian Taxes - Paris considers charging SUVs higher parking fees

12th July 2023
Externalities - UK farming causes over a quarter of cities’ particle pollution

26th March 2023
The UK Hand Car Wash Market

13th February 2023
Externalities and Market Failure - The Toxic Legacy of 3M's 'Forever Chemicals'

28th December 2022
New Zealand legislates to ban cigarettes for future generations

15th December 2022
UK government attempts to defend their record on sewage discharges

6th September 2022
Plastic packaging disposal tops 100 billion pieces a year in the UK

13th July 2022
2022 Exams - Policies to Reduce Negative Production Externalities

Topic Videos
Key Diagrams - Negative Production Externalities

Topic Videos
Externalities & Market Failure (Quizlet Revision Activity)

Quizzes & Activities
Market Failure (Quizlet Revision Activity)

Quizzes & Activities
Market Failure - Explaining External and Social Costs

Topic Videos
Externalities - No country met WHO air quality standards in 2021

24th March 2022
Government intervention - Paris announces car ban for central districts

23rd February 2022
Water Industry and Externalities - SW Water criticised for dismal pollution record

22nd February 2022
Petrol and Diesel Cars and Market Failure - Chains of Reasoning

Topic Videos
Negative Externalities - Peruvian Fish Industry causes a stink

23rd January 2022
Externalities - The Human Cost of Marine and Traffic Pollution

7th January 2022
Welfare Loss from Negative Production Externalities

Topic Videos
Sugar Tax (Student Essay)

Practice Exam Questions
COP26 - Coca-Cola’s 100 Billion Bottle Problem

31st October 2021
Externalities and the Supply Crunch

8th September 2021
Teaching Actvity: The Economics Gallery (Externalities)

Teaching Activities
Externalities and Market Failure - 2021 Revision Update

Topic Videos
Pollution, falling birth rates and increased mortality

17th July 2016
Evaluating air pollution as a public hazard

19th December 2016
Externalities - Gold mining in Ghana hurts farm productivity

20th December 2016
Natural Capital - The Battle for Biodiversity

26th December 2016
EU approves overhaul of emissions trading

15th February 2017
Housing Market Failure (Revision Presentation)

Teaching PowerPoints
Market Failure & Government Intervention (Revision Presentation)

Teaching PowerPoints
Economics of Market Failure Revision Quiz

Quizzes & Activities
Positive Externalities (Revision Presentation)

Teaching PowerPoints
Negative Externalities (Revision Presentation)

Teaching PowerPoints
Production and Consumption Externalities (Revision Presentation)

Teaching PowerPoints
Colour Coded AS Micro Answer - Potash Mining

Exam Support
Positive Externalities

Topic Videos
Pollution Taxes and Negative Externalities

Topic Videos
Negative Production Externalities (Chain of Analysis)

Exam Support
Externalities - Turning the Tide on Waste

15th December 2020
What is the economic impact of the shutdown of the English football season? [Year 12 Enrichment Task]

15th April 2020
How to stop plastic getting into the ocean

1st May 2020
Indirect Taxes Introduction (Online Lesson)

Online Lessons
Externalities of Pandemics

Topic Videos
Market Failure and Government Intervention - Clear The Deck Key Term Knowledge Activity

Quizzes & Activities
Positive Consumption Externalities

Topic Videos
Think tank urges increase price of alcohol in supermarkets.

13th September 2019
Externalities of Festivals - Is there a case for a new tent tax?

30th August 2019
Production and Consumption Externalities

Topic Videos
Indirect Taxes (Government Intervention)

Study Notes
Economics of Legalising Cannabis

Topic Videos
The positive returns from cutting food waste

14th February 2019
UK Plastic bag charge set to be doubled to 10p

27th December 2018
Externalities: Air pollution is the new tobacco

21st December 2018
Chief Medical Officer calls for extended sugar and salt bans

21st December 2018
Optimum “health tax” for meat calculated

8th November 2018
Britain's 'unhealthiest' High Street revealed

2nd November 2018
Fracking returns to the UK

16th October 2018
Tourist Overload and Rational Choice Theory

24th August 2018
Benefits and Costs of Economic Growth

Study Notes
Externalities - the 4 Key Diagrams

Study Notes
Positive Externalities

Study Notes
Government Failure

Study Notes
Economic Growth - Disadvantages

Study Notes
Negative Externalities and Government Intervention

Study Notes
Negative Externalities

Study Notes
Thailand afflicted by mountains of electronic waste

1st July 2018
Drones – taking the UK’s economy to new heights or a cause of market failure?

29th May 2018
Alcohol Consumption Rates in the UK - a quick quiz!

1st May 2018
UK power generation shifting away from coal

20th April 2018
Corporate responses to social issues

10th April 2018
Nudging behaviour to save water

26th February 2018
Congestion in UK cities - 'Ranking Activity'

6th February 2018
Waitrose bans sale of energy drinks to under-16s

4th January 2018
Plastic Planet - An Economic and Human Crisis

30th December 2017
Externalities - What a photo!

11th December 2017
Seven charts that explain the plastic pollution problem

10th December 2017
Brazil’s contaminated river Doce

12th November 2017
How will we deal with all of the world’s rubbish?

31st October 2017
Government regulates stakes on fixed-odds machines

31st October 2017
De-Merit Goods

Topic Videos
How Junk Food is Transforming Brazil

21st September 2017
What can be done about problem gambling?

1st September 2017
Pollution breaches by farmers on the rise

23rd August 2017
Rising Obesity in OECD Countries

13th August 2017
Is work too easy? A new analysis on obesity

24th July 2017
Travel Tax plan to fund better roads in the UK

16th July 2017
Tackling 4 Million Deaths a Year from Air Pollution

19th April 2017
Council votes to charge people to run in a local park

12th April 2016
E-cigarettes - Government policy to combat demerit good or government failure example?

28th August 2015
Does taxing people's rubbish work?

21st March 2016
Beyond the Bike - photos of the week

18th March 2016
Market failure and government intervention - revision resource

18th March 2016
Air pollution may be harming your fantasy league ranking!

9th March 2016
Economic damage of polluted waterways in Bangladesh

6th March 2016
Brighton's Smart Sugar Initiative

2nd March 2016
The power of drug cartels

5th February 2016
Market Failure: 8 resources on Market Failure

18th January 2016
Richard Branson on COP21 and Heathrow Airport (and possible conflicts!)

16th December 2015
Flood defences and the Public Goods debate

7th January 2014
Scotland introduces a minimum charge for plastic bags

21st October 2014
E-waste in West Africa

7th November 2014
Obesity - A Global Economic Issue

24th December 2014
Russia consider vodka price caps

25th December 2014
Mining for Polyhalite in a National Park

25th May 2015
China struggles to limit environmental impact of growth

23rd July 2015
Tobacco tax increase is urged

12th October 2015
Costing the Earth

15th October 2015

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