O'Reilly logo

World 3.0: Global Prosperity and How to Achieve It by Pankaj Ghemawat

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter Six

Global Externalities

figure

Source: Arcadio

THIS CHAPTER considers a second form of market failure that globalization is charged with exacerbating: externalities—specifically, environmental externalities. The cartoon deftly captures the antiglobalization screed that globalization is causing an ecological catastrophe, and adds the twist that that benefits business. The underlying idea is that market transactions fail to price in harms ranging from air and water pollution to depletion of natural resource stocks to global warming. And as a result of this externalization of ecological harms, we see too much of them.

Environmentalists have ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required