Question

1. Read the following article, London breaches annual air pollution limit for 2017 in just 5 days:
   
   Answer the following questions:

1. Fill in the blanks: The negative externality in this article is the ________________ that is a cost borne by________________
2. Fill in the blank: London officials estimate that ________________ premature deaths each year are attributed to toxic air.
3. List some of the steps London’s government has taken to increase air quality.
4. Why is London known as the “Big Smoke?”
5. What are some other options London’s government can take to help alleviate the pollution?

Answer 1

1. Fill in the blanks: The negative externality in this article is the _air pollution_ that is a cost borne by__public___
2. Fill in the blank: London officials estimate that __9,500_____ premature deaths each year are attributed to toxic air.

3. The london draft Air Quality Strategy 2019 outlines actions that will be taken to improve air quality in the Square Mile, in 6 policy areas:

• Air Quality monitoring
• Leading by example
• Collaborating with others
• Reducing emissions from road transport
• Reducing emissions from non-transport sources
• Public health and raising awareness

4. "The Smoke" / "The Big Smoke" / "The Old Smoke" – air pollution in London regularly gave rise to pea soup fogs, most notably the Great Smog of 1952, and a nickname that persists to this day

5. some other options London’s government can take to help alleviate the pollution are:

• Tax. e.g. Carbon tax, which makes people pay the social cost of pollution.
• Subsidy. e.g. subsidy of alternative energy sources.
• Pollution permits, e.g. carbon trading schemes where firms are given the right to pollute a certain amount; these permits can be traded with other firms.
• Regulation. Limits on a number of pollutants that can be discarded into the atmosphere.
• Changing consumer behaviour – e.g. through advertising, nudges.