ipl-logo

Externalities Of Smoking

750 Words3 Pages

This article focuses on the ban on tobacco display. It deals with the aspects of negative externalities of consumption caused by the consumption of tobacco and cigarettes and the effect of the ban on tobacco display on small businesses. A negative externality is a cost that is suffered by the entire society as a result of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organisation, property owner, or resource that is indirectly affected. Although the externality that is generally generated in the environment and the society can be positive, the externalities of consumption generated by smoking and the intake of tobacco are all negative, and this is one of the biggest examples of a negative externality of consumption. When consuming a product, if negative externalities are produced, it will mean that the marginal social benefits are less than the marginal private benefits. The consumers will not think about the negative effects that the consumption will have on third parties, they will only think about the benefits/costs to them as an individual. The consumption of products like alcohol, cigarettes, tobacco, drugs etc come under the negative externality of consumption as it does not only harm the individual who consumes these products but it also affects the society as a whole, because the destruction done by the individual who consumes such products will directly affect the

Show More
Related

  • Analysis Of Stephen Garey's Brands R Us Essay

    631 Words  | 3 Pages

    In the article, “Brands R Us” by Stephen Garey, he talks about the negative effects of consumerism. Consumerism is the belief that people should spend a lot of money on items and services. He states that though many people don’t realize it advertisements have an effect on what we buy. Garey believes that every single person should limit their exposure to these advertisements. He also says that people are not consciously aware of advertisements but they subconsciously store them in memory.

    Read More

  • Analysis Of Ugly Is The New Look For Cigarette Packs By Tina Rosenberg

    592 Words  | 3 Pages

    In Tina Rosenberg’s article, “Ugly is the New Look for Cigarette Packs”, the main issue focuses mainly on how packaging is used to both dissuade and persuade people when purchasing the product. More specifically, smoking is a product, with the ability to sell based heavily on how its customers portray the product. The argument on how to dissuade people from purchasing cigarettes is discussed heavily, and Rosenberg includes many examples used by various countries to succeed in decreasing in cigarette sales. On the other hand, the discussion on what is used to persuade customers into buying the cigarettes is section of her article that shows how easily people are swayed into purchasing a specific brand of cigarette. By mentioning how cigarette companies persuade customers, it also provides a secondary issue in the article, about whether or not it is ethical to persuade customers in this manner.

    Read More

  • Tobacco Pros And Cons

    147 Words  | 1 Pages

    The article written by pharmacist John Hill and published by the Globe and Mail Inc. to suggest an idea that could help solve the conflict in which pharmacies selling tobacco products. John Hill (1993) states that “Tobacco products should not be removed from drugstores, pharmacists should be” (p. A19). The author explains that tobacco is a palliative herb and a part of the North American heritage. The author also suggest that the pharmacist can work from a partition that is next door to the drug store. Also, the author finds the conflict between the tobacco dangers and the pharmacist concern regarding its harm is difficult for the customer to understand.

    Read More

  • Tobacco Addiction In California

    1305 Words  | 6 Pages

    Increasing the minimum age of tobacco products will lead to reductions in both smoking prevalence and cigarette consumption among smokers, especially among adolescents and young adults. Access will be decreased to minors and 18-20 year olds who already smoke have to be forced to quit. In all likelihood, the majority of this population would attempt to purchase tobacco products illegally through retailer or black market channel (SB-151 Tobacco Products, n.d.).

    Read More

  • Louisiana Legislature Oks 50-Cent Tax Increase On A Pack Of Cigarettes?

    870 Words  | 4 Pages

    In article, the writer points out that Louisiana legislature Oks 50-cent tax increase on a pack of cigarettes. To prove the statement, we can apply a microeconomic concept which is tax on buyer and tax on seller to the situation. An excise tax is a tax charged on each unit of a good or service that is sold. To discourage consumption of some good is one of the typical aims for excise taxes. From time to time, governments place taxes on markets with intentionally decrease market activity for the reason that the government feels the good or service being consumed is ethically or morally bad for people and it doesn’t trust people to make their own choices.

    Read More

  • The Positive And Negative Effects Of Tobacco

    963 Words  | 4 Pages

    According to the bulletin of the World Health Organization there are almost 1 billion male and 250 million female smokers worldwide and every day an estimated 82 000 to 99 000 young people start smoking; many are children under the age of 10 and most reside in low- or middle-income countries, if this trend continues, then tobacco could kill a billion people around the world in this century. Aside from death, smoking tobacco gives of a great number of negative effects in the global community, such as it exacerbates poverty, contributes to world hunger and reduces economic productivity. Tobacco use and poverty are inextricably linked. In the article of the World Health Organization entitled “Why is tobacco a public health priority?”

    Read More

  • The Influence Of Smoking In Canada

    1546 Words  | 7 Pages

    In Canada, the average cigarette consumption among daily smokers had dropped from 15 cigarettes per day (GPD) in 2012 to 13.9 GPD in 2013. From 1999 to 2013, cigarette consumption has declined significantly, by more than 3 cigarettes per day. And the yearly consumption during this time period kept decreasing by 1.3% averagely (Propel, 2015). According to the statistics conducted in 2013, “average daily cigarette consumption was 15.2 for male smokers and 12.5 for female smokers, which was a statistically significant difference” (Propel, 2015, p18). Between 2012 and 2013 consumption declined greatly among males but not females.

    Read More

  • Positive Externalities In Education

    1200 Words  | 5 Pages

    Externalities can be defined as whenever the benefit or cost of consuming a good affects people that are not actually consuming it. They come in two forms: positive and negative externalities. Positive externality can be defined as this occurs when the consumption or production of a good causes a benefit to a third party an example can be education when people go in college because they want to get an education, probably so they can get good jobs, live happy lives, etc. But them getting an education does not just benefit them, it benefits society as well. Some may go on to invent handy products, or come up with important ideas, which everyone else will gain from.

    Read More

  • Having A Free Market Economy In The United States

    523 Words  | 3 Pages

    Having a free market economy means that the essential goods and services such as education, food, shelter and health care are not provided as much as they should be. The main aim for any business is to make profit and public goods such street lights, public transportation and even fire services does not put in money in a business’s pocket. Since there are no government regulations, some services may be provided poorly because they cost money or rather included taxes. Products such as cigarettes and alcohol will have more attention because these products bring more wealth to a business. This means that the wealth is chosen over the less advantage who have to suffer as they are not provided their public needs and are unable to afford the high prices of the market

    Read More

  • Tax On Cigarettes In Australia

    749 Words  | 3 Pages

    Externalities can be either of production or consumption and positive or negative and it means that the action that is being taken affects a third party. In the case of this article regarding cigarettes, there are negative externalities of consumption as

    Read More

  • American Tobacco Industry Ethics Essay

    530 Words  | 3 Pages

    The time has come to reevaluate the ethics concerning the global distribution of cigarettes by American tobacco companies. Tobacco Industry Ethics Currently, there are many ethical grey areas in legislation regarding the global distribution of American branded cigarettes. Some policies regarding this specific type of potentially hazardous product have already been adopted domestically. The way, means, type, content, and target audience of tobacco products is closely scrutinized and regulated in America. Furthermore, warning labels expressing the health risks accosted with smoking are mandated wherever tobacco advertising is permitted.

    Read More

  • Essay What Could Explain This Change In The Price Of Pollution Permits

    774 Words  | 4 Pages

    Such negative externalities incur costs for the government e.g. breathing problems would result in an increase in health costs such as more purchasing more asthma pumps and breathing masks. Therefore an increase in the price of pollution permits would make it costly to pollute which should discourage polluting firms from polluting huge amounts. Therefore negative externalities such as breathing problems are internalised and governments’ expenditure on the health sector is reduced. Since the pollution permits create a market for buying and selling carbon permits, the government can raise funds by selling pollution permits to the industry. The revenue made could then be used to clean up the environment or compensate

    Read More

  • Cigarette: A Case Study

    783 Words  | 4 Pages

    The graph illustrates that there are negative externalities of consumption of cigarettes. As indicated, the marginal private benefit is greater than the marginal social benefit as there is a harm to society. The difference between the MPB and MSC is the negative externality. As consumers only consider private benefit, the free market equilibrium will be at P1 and Q1. Thus, cigarettes is over-consumed by q1-q units.

    Read More

  • Argumentative Essay On Why Tobacco Should Be Banned

    1150 Words  | 5 Pages

    It affects the health of the human beings and also the environment. Despite having all these negative effects, tobacco is of great economic importance as it creates employment for the citizens. The negative effects of tobacco smoking supersede its positive contributions. Therefore, tobacco smoking should be banned. .

    Read More

  • Cause And Effect Essay About Smoking

    974 Words  | 4 Pages

    Smoking has become a social habit nowadays. When people around are smoking, the person practically feel like he/she should be doing the same. And this is increasing day by day in our country. Smoking tribulates almost every organ of the body. It is the leading cause of more than 443,00 deaths each year.

    Read More

More about Externalities Of Smoking

Open Document