Answer to Question #195133 in Macroeconomics for Reitumetse

Question

Evaluate the South African externalities problem in the energy sector considering the

case study above and propose relevant intervention measures to address these externalities.

Answer 1

Pollutants or waste products are emitted by productive facilities, which have an effect on human health or environmental elements of importance to humans (such as agricultural crops), where the costs of those pollutants or waste products are large.

The business partnership between the manufacturer and its consumers does not capture the impacts.

Many who bear the risks, on the other hand, are not paid in any way.

Solutions

1.Defining property rights

2. Imposing of taxes by the government

3. Issuing of subsidiaries