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Positive and Negative Externalities - Lesson Plan: 3 x 1 hour lesson

A series of 'off the shelf' lesson plans and resources for use in the classroom. These lessons deal with positive and negative externalities and are relevant to the following specifications:

• AQA: AS Module 1, 10.5
• Edexcel: AS Unit 2
• OCR: AS Unit 2882, 5.2.2

Aim:

These lessons provide an opportunity for students to do some limited research into an issue and to do a presentation to their colleagues on two issues that highlight both positive and negative externalities - tuition fees and offshore wind farms.

Students are given time to do some collective research on an issue - guides are given as to the range of issues they should look at and a list of sites that will give plenty of information. The aim is to ensure that students apply knowledge they have gained on externalities to these two highly relevant areas.

The emphasis is on students presenting a coherent case, outlining both the positive and negative externalities of the issue, and offering an informed judgement about the possible outcome following their investigation. It is crucial that students try to get some idea of the importance of quantifying evidence - several of the links on tuition fees, for example, comment on the amount that those with a degree are likely to earn over a lifetime as opposed to those without. This might help them to appreciate the way in which governments go about arriving at decisions based on economic analysis.

The last paragraph in the Activity has several points stressed - it is important that students use the information they gather effectively - those that will be doing some form of coursework will benefit from honing their skills in this respect and the rest ought to be developing these key skills in any event!

Learning Objectives:

At the end of the lesson, students should be able to:

• Work as a group to research a current issue
• Articulate the key points relating to the issue and to have data to support those key points
• Use appropriate economic theories to help explain the issues arising
• Understand, use and manipulate diagrams to help explain the issue being studied
• Arrive at informed conclusions based on some clearly defined criteria supported by appropriate data

Resources:

• PowerPoint Presentation - Positive and Negative Externalities [74 KB]
• PowerPoint Presentation - Market Failure [331 KB]
• Mind Map - Externalities
• Activity - Positive and Negative Externalities
• PCs for research
• Use of a projector and white board for student presentations

Lesson Structure:

Lesson 1

1. Review the key points regarding externalities using the appropriate PowerPoint Presentation. (10 minutes)
2. Introduce the Activity - briefly explain the task and go through the two case studies. (10 minutes)
3. Students work in groups doing research. (40 minutes)

Lesson 2

Students are given further time to research and create their presentation.

Lesson 3

1. Students give their presentations. (30 minutes)
2. Discussion of the issues arising and clarification of the concepts/diagrams, etc if necessary. (20 minutes)
3. Review of the learning objectives. (10 minutes)