Question

Discussion post

G‌‍‍‌‌‍‌‌‌‌‌‍‍‍‌‌‌‌‍o to the internet and find a news article posted within the last month that discusses a potential positive or negative externality. Summarize key points in your initial discussion post. Be sure to use the concepts, terminology, and frameworks that are covered this week. For example, you may want to address what externality this regulation is attempting to address. Is it a positive or negative externality? What is the current policy being used? Is there an alternative policy approach that may work better/worse (taxes or subsidies, for example), and why? How effective does the current policy appear to be working? Note that the goal of t‌‍‍‌‌‍‌‌‌‌‌‍‍‍‌‌‌‌‍his discussion is to read, understand, and discuss recent news using microeconomic terminology. The article should be from an online newspaper or magazine. Materials posted on educational websites, such as The Balance, Khan Academy, and so on, are not considered news articles even if they were recently updated and contain material related to the discussion topic. Reflection: the students should also include a paragraph in the initial response in their own words, using microeconomic terminology, reflecting on what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life‌‍‍‌‌‍‌‌‌‌‌‍‍‍‌‌‌‌‍.

 

Expert Solution

CNBC's article sheds light on the potential cost of climate change to Amazon's business operations. This is a typical example of a negative externality, which refers to the effect wherein the actions of individuals or firms lead to negative consequences not only for others but for the entire society as well as the environment. Palmer's (2024) study on the impact of climate change on Amazon's business operations draws attention to the need for stricter regulatory measures to handle negative externalities, as illustrated by the fact that Amazon already factors in climate-related risks in its financial statements, the growing scrutiny of the company's environmental performance, and the current challenges it experiences in achieving its ambitious climate targets.

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