• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...

Introduction

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.

Middle

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.

Conclusion

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Markets & Managing the Economy section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Markets & Managing the Economy essays

  1. Marked by a teacher

    Discuss the merits of road pricing (25)

    4 star(s)

    Shown on the diagram below. This means the market is functioning at point X, where Price of congestion is P and the quantity of congestion produced is Q. Thus there is an overconsumption & overproduction of consumers not paying the full cost of their negative externalities thus allocative inefficiency exists, the market is failing.

  2. Explain what you understand by the Private Finance Initiative - Evaluate how successful it ...

    So politicians looked elsewhere to fund these projects. It was the Conservatives that looked at the idea of involving the private sector in improving the public services. They introduced Compulsory Competitive Tendering - CCT - obliging public bodies to offer contracts to the lowest bidder. The problem soon became clear that although a service might be cheap, but it could also be bad.

  1. Explain why environmental pollution is regarded as a source of market failure? Evaluate three ...

    can see that the supply has decreased to S2 due the increasing costs, this intake causes a reduction in the quantity supplied and also increases the price. The advantages of using taxes as a form of government intervention is the fact that it usually has quick results this is because

  2. For a duopoly involving homogeneous products, explain and contrast a Cournot, Stackelberg and Bertrand ...

    Yet firm 1 cuts its output, this being a lagged response to the entry of firm 2. Therefore day 3 output combination is on 1'd reaction curve but not on 2's reaction curve. Given the shapes of the reaction curve as the process continues it converges on the Cournot equilibrium which is a stable.

  1. Why Did Germany Experience Hyperinflation in 1923?

    This area was extremely important to the German economy, as it was its industrial heartland and the region on which the whole German economy depended. The two countries invaded the Ruhr because Germany was not paying the reparations stated in the Treaty of Versailles.

  2. What Are The Effects Of Tescos Oligopolistic Market Structure, On Both Consumers And Producers?

    They might lose the competitive edge in the market and suffer a long term decline in market share and profitability. The prevailing strategy for both firms is probably to go ahead with research and development spending. If they do not and the other firm does, then their profits fall and they will lose market share.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work