Unintended Consequences of Technology and Externalities By the end of this lesson you will: 1.Be aware of the unforeseen consequences technology can have. 2.Be aware of the Economic, Social and Environmental nature of these consequences. 3.Have explored the concept of Externalities.

Recap How can leapfrogging reduce the technology gap? Give examples. How does the OZONE HOLE highlight the unintended impacts of technology?

Polluter Pays Principle Those that cause the pollution should bear the economic cost of the damage they are doing to the environment 1)Command and control – new technologies are introduced to limit pollution e.g. Catalytic converter 2)Market-based – governments introduce pollution taxes, carbon trading permits (eg EU ETS) and produce labelling

The Car industry Many governments have imposed penalties on polluters e.g. Car drivers have to pay Vehicle Excise Duty (VED) bands based on the amount of C02 a vehicle emits. This is expected to increase from £110 to £115 for an Audi A3 next year How much impact will an increase in VED in the UK have on car ownership, or reducing C02 emissions?

Indian Car Sales Boom The Tata Nano sells for £1250 and is the cheapest new car in the world Demands for up to 1 million cars each year Indian car ownership expected to more than in Japan by 2017 Problems ?

Externalities In 2004 India released 266 million tons of carbon = 4 th largest C02 emitting country. Concerns as the new Tata Nano does not meet current European emission standards and will increase the CO2 emissions into the atmosphere. If increased car ownership in China and India lead to higher C02 emissions, is there any point in European governments trying to reduce their own C02 emissions?

Discussion – Polluter Pays? Should those who pollute the environment bear the financial cost of the damage they are causing?

Independent Study Complete any outstanding tasks from the lesson. Research some unintended impacts of technological developments/innovations. Update your glossary sheet. Any outstanding homework pieces need to be in ASAP – parents evenings start this week!