It is seen as a negative externality due to the use of toxic chemicals during the production of paper that are suspected of causing developmental, reproductive, and immune system damage. This reflects the society cost of producing paper is larger than cost of paper producers. As shown in the diagram, the social cost curve measures the private cost of producers and cost of bystander affected as a result of negative externality that the paper producers produced. The social cost curve shows a shift to the left of private cost curve, due to the excessive amount of paper produced, and the external cost on bystander is taken in to consideration. The difference between these two curves represent the externality(pollution) caused by the paper producer. At the quantity less than or equals to QO, consumers value paper more than the social cost of producing it. This negative production externality is considered harmful to society. If paper producer produce more thanQO, the social cost of producing paper exceeds the value of paper to consumers. Therefore the intersection point of demand curve and social cost curve indicates the social optimal quantity in the viewpoint of society. Hence reducing the plastic production below the market equilibrium, QM to the socially optimal quantity, QOincreases the total economic well-being of …show more content…
Statistical evidence is presented for further understanding of how the pollutants are harmful to the society. In conclusion, the general societies will still have to bear the social cost as a result of pollutants emission due to the need of consumers.
(724 words)
Reference List:
Mankiw, N.G. (2007). Principle of Microeconomics (4th ed.). USA: Thomson Higher Education.
Parnanen, Heikki. (1993, January). Global challenges for the forest industries. Unitas, 65(1), 19. Retrieved from EBSCOHost.
Reach for Unbleached Foundation. (1999). The Pulp Pollution Primer. Vancouver, Canada: Broten and Ritchlin.
Suthar, Surindra (2010). "Water quality assessment of river Hindon at Ghaziabad, India: impact of industrial and urban wastewater". Environmental monitoring and assessment (0167-6369), 165 (1-4), p. 103. Retrived from EBSCOHost .
The Women’s Environmental Network Trust . (1994) Chlorine, pollution and the environment. London: Link, Canning and Rees.
U.S. Environmental Protection Agency. Priority PBTs : Dioxins and Furans Fact Sheet. Washington, D.C.: Office of Pollution Prevention and Toxics.
World Bank Group. (1998). Pollution Prevention and Abatement Handbook: Pulp and Paper Mills. Washington D.C.: Environment