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Explain the Environmental effects of increased demand for road & air transport

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Explain the Environmental effects of increased demand for road & air transport L1. Transport - the movement of people and goods for personal and business reasons Air Pollution - The combustion of fossil fuels causes most of the air pollution we experience in our towns and cities today. In the main, these combustion fuels come from engines and power stations in the form of carbon monoxide, carbon dioxide and sulphur dioxide. The conditions are often made worse by the congestion and high traffic levels we experience, as more and more people take to the roads. Negative externality - these exists where social costs of an activity is greater than the private cost, congestion is an example of a negative externality L2. ...read more.


Shown on the diagram below. This means the market is functioning at point X, where Price of transport is P and the quantity of air pollution through air and road transport produced is Q. Thus there is an overconsumption & overproduction of consumers not paying the full cost of their road and air transport thus allocative inefficiency exists, the market is failing. A welfare triangle loss of YXZ occurs. The welfare of consumers could be increased by this amount if output of road and air transport is lowered and the resources saved my doing this are put to better use that helps the environnment. To correct this market failure of air pollution, the equilibrium should be at point Y, where allocative efficiency is achieved, as price is now = to marginal social costs. ...read more.


In the past 150 years, such activities have pumped enough carbon dioxide into the atmosphere to raise its levels higher than they have been for hundreds of thousands of years. Nitrogen oxide and hydrocarbons are omitted from car and plane exhausts and severely affect air quality. This deterioration in the air that we breathe can cause respiratory difficulties for some people. It also makes acid rain when it mixes with water in clouds - this causes damage to wildlife and plant life. On a larger scale, governments are taking measures to limit emissions of carbon dioxide and other greenhouse gases. One way is through the Kyoto Protocol, an agreement between countries that they will cut back on carbon dioxide emissions. Another method is to put taxes on carbon emissions or higher taxes on gasoline, so that people and companies will have greater incentives to conserve energy and pollute less. ?? ?? ?? ?? Katie Scott Easter Homework 1 ...read more.

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