ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Air pollution is essentially a negative externality: it imposes external costs to people who are external to the transaction of a polluting product.

Detailed explanation-2: -Driving a vehicle produces several negative externalities, or costs that drivers impose on others. They include things such as traffic congestion, air pollution, traffic accidents and even geopolitical risks from foreign oil dependence.

Detailed explanation-3: -The main externalities of air pollution include: Economic Costs. They include a wide range of externalities like damage to property, superstructures and infrastructure, and loss of productivity of people and crops.

Detailed explanation-4: -Air pollution: A factory burns fossil fuels to produce goods. Water pollution: a tanker spills oil, destroying the wildlife in the sea and affecting the people living in coastal areas. Noise pollution: People living near a large airport suffer from high noise levels.