Negative Externalities: The Hidden Social Costs

In economics, an externality is an indirect cost or benefit to an uninvolved third party that arises as an effect of someone else's activity. Negative externalities can pose a fundamental problem to society. The story of Tony, a fisherman, shows what can happen when negative externalities are not internalized.

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COLLABORATORS
Script: Jonas Koblin and Jonas Jacquet
Artist: Pascal Gaggelli
Voice: Mithril
Coloring: Nalin
Editing: Peera Lertsukittipongsa
Sound Design: Miguel Ojeda
Production: Selina Bador

SOUNDTRACKS
Toys Are Alive - Studio Le Bus

DIG DEEPER with these top videos, games, and resources:

Listen to this EconTalk episode with Mike Mungers on subsidies and externalities.

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Watch Sprouts' video on tragedy of the commons.

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SOURCES

CLASSROOM EXERCISE

CHAPTER
00:00 Introduction
00:44 Environmental impact
01:07 Social behavior impact
01:32 Solution
2:00 Distortion of supply and demand
02:35 Tragedy of the commons
03:01 To prevent negative externalities
03:18 Summary
03:41 What do you think?
04:13 Patrons' credits
04:22 Ending

#economics #sproutslearning #externalities #socialcost