Monday, January 14, 2008

Unit 2: Negative externalities: Biofuels

This BBC clip and associated article says the EU is rethinking its biofuel strategy as Europe's environment chief has admitted that the EU's policy on biofuels has had a negative impact.

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7180000/newsid_7186500?redirect=7186553.stm&news=1&bbwm=1&nbram=1&nbwm=1&bbram=1&asb=1 >

http://news.bbc.co.uk/1/hi/world/europe/7186380.stm

a) Explain what is meant by a negative externality
b) Identify the negative externalities from the clip and article that are associated with biofuel production and identify the third parties effected by the negative spillover effect?

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