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Definitions:
Please select economic growth external costs social costs private costs marginal social cost

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Please select externalities environment social cost

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Freak Weather - apocalypse now or storm in a teacup?

Economic Development - Success or Environmental Failure?

If the developed world continues to be the model for all less developed countries to follow, then greater damage to the world's weather systems is inevitable. Many question the ethics of the richer countries in advocating alternative environmentally-friendly routes to development. Indeed it is hard to see how the populous less-developed countries could avoid adding to the problems of global warming. Greater economic growth may naturally lead to greater environmental degradation.This environmental cost is called an 'external cost' by economists. When external costs are added to private costs, the total cost of the activity is called the social cost. This social cost will be greater, the greater the environmental costs.

Here, marginal social costs increase steeply as more is produced.

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