1. Environment and Ethics 2

2. Suzuki describes that an economist only sees the environment as an externality.
What is an Externality?
Video
Read Page 330 .
Explain a possible externality for RAK Academy.

3. Social Cost Building an Airport Example only…
The social cost involved in building and running an airport can be split up into:
Private costs of airport
Cost of constructing airport.
Cost of paying workers to run airport
External costs of airport
Noise and air pollution to those living nearby.
Risk of accident to those living nearby.
Loss of landscape.

4. Last lesson, we looked at the BP Deep Horizon disaster.
Try to calculate the Social Cost by looking at the Private Cost and the External Costs for this disaster, or an example of your own. Be prepared to feedback to the class.
20 minutes

5. Homework Question 2 only Page 339 Exam Style Questions
Chapter 27 review
Pollution = Bad
However, Companies can make money from being good. ie. Being environmentally responsible and ethically responsible companies.
eg. Honest Company valuation at over over 1.7 Billion dollars

6. Questions 1 2 3

7. Answers 1 2 3