An Introduction to Externalities

What are externalities and what are the different kinds of costs? And what does this have to do with the rise of “superbugs"? This video is an introduction to externalities, including the concepts of private cost, external cost, and social cost. Using the example of antibiotics and viruses, we take a look at how costs are passed along to different members of society beyond the producer and consumer. We’ll use a chart to illustrate how to calculate the effects of a Pigouvian tax, and we provide definitions for the other key terms that will be used throughout this video series.

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[jtswanner]

You guys are seriously awesome. I've watched every video up to this one so far, and I have to say that it's insanely informative. Great job on all this!

[heldervicentec]

Who is watching this during Covid 19? so real like today situation

[ChrisSace]

That was clear and concise... have been trying to understand this concept for a week now. Thank you!

[akshaysam]

This channel is brilliant! The videos explain economic concepts so lucidly and it is just so comfortable to watch. You are helping a lot of students and that is a great service to the society. The negative externalities are going down by your positive effort!!

[TheFedericohiguain]

Wow I spend 30 minutes trying to understand my textbook about externalities and I couldn’t get it but your explanation was just amazing, now I understand everything, you got a new subscriber I’m looking forwards to more of your videos. Thanks!

[GloriaAtimYoutubeCoach]

Am in class right now and this video made my research easy

[poetsonsurg]

These videos are really well explained. I've watched heaps in preparation for a new job and enjoyed them all. Thanks so much for this content.

[newworkleatherdetroit]

Pigouvian tax formula at 10:40. Thanks I'm subscribing. Great analogy.

[giftyarthur]

This channel does an awesome job of explaining economic concepts. Thank you so much for making learning easy and very insightful.

[drmksharma]

Really relevant now also in case of Covid-19 mutating again and again and becoming more dangerous, its has become more resistant...Awesome explanation, surprisingly 5 years back...

[jessicatoussaint]

you guys are awesome!!!! thank you and pray that God will bless y'all :)

[OfficerK-D-]

The ideal solution IMO is using money from the Pigouvian tax for compensating external costs. An example would be a CO2 tax that is used for planting trees.

[Simran-xnec]

I promise that once I start earning, I would definitely contribute money for this channel :)

[audreychoi]

clear explanation! thank you very much :)

[davidvg]

You may include portuguese subtitles too. Thank you, amazing work ;)

[leahpugh]

This was a great explanation. Thank you for the information!

[shalommichael]

can you give an example of external cost

[SingDownUnder]

I also love your channel and use it regularly for my classes here in Auckland New Zealand.

However this vid (intro to Exteralities) is confusing. Our textbook obeys a convention that negative externalities of consumption reduce social benefits (MB shifts left to MSB), rather than shifting the MC curve left to MSC consistent with your wording of "external cost"

AS far as I can see the convention is useful and otherwise universal. Am I missing something. Owen Sharpe

[worldcitizen]

A fun drinking game: drink a shot every time he says "antibiotic(s)".

[Kniatty]

Obrigado por compartilhar conhecimento conosco.