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Chapter 28 (Externalities (Social costs and Social benefits (Social…

- - - - Example: a car factory will create noise and disturb the local neighbourhood
  - - - Example: a car factory can create jobs
  - - - Example: the owner of the car business will earn the revenue from selling and the government might increase spending on social project as the factory need to pay taxes for them
    - - Example: the cost of construction of a car factory and the cost of making the environment polluted (smoke and fumes,...)
- - - - IKEA has more than 700,000 solar panels powering its stores, and plans to start selling them to customers in the UK.
    - - It uses post-consumer recycled materials in some of its products, including its 2011 World Cup jerseys.
    - - It moved its headquarters from suburban Seacaucus, New Jersey to a LEED-certified building in downtown Newark to eliminate the need for employees to drive to work and reducing their carbon footprint.
- - - - may not buy the products (boycott)
    - - groups of people who act together to try to force businesses or governments to adopt certain policies, when
        
        well organised and finance
        
        consumer boycotts have effective result
        
        has popular support and receives much media courage
      - unlikely to result when
        
        unpopular but not illegal firms
        
        businesses sell to other businesses, other than consumers
        
        the costs of changing methods is more than cost of poor image and lost sales
    - - laws banning
  - - - Wetsuits are made of natural rubber and plastic bottles are turned into parkas.
      - They’ve released ads encouraging people to not buy things they don’t need (even their own products) and implemented a program to repair rather than replace their products.
      - A high proportion of its materials are made from recycled fabrics, including its polyester, nylon, and wool.