Among externalities are ecological issues. When ecological issues come in, it is hard to control it. Example for these is the oceans, the rivers, and the air (Gale, 2001). It is hard for a market to cope up especially if there is an ecological exploitation. Most affected to this are those market whose products are taken directly to the one exploited, e.g. like sea foods.
But usually the causes of the negative externalities are done also by the market itself. Example are those factory owners, if they dispose there wastes to the streams, they cause pollution. The market maybe aware about the impact they are doing but they think they can get away with it, or because the disposing of the garbage is too high, or they limit the budget for disposing waste to avoid costly method of disposing it (Mind your Business, 2003). In the long run, the negative impact will go back to them and that's when they realize the result of there actions.
The market should regulate their waste disposal. They should invest a food was to dispose their wastes. In this case, they can be able to prevent ecological issues. To avoid the market failure, there are things that can be done not only by the market itself but the government can also intervene. Since the market know little about environmental impacts this requires research. This way though causes high costs for research. ...Show more