Topic > Discussion of the issue of smoking in cars - 621

This article discusses the widespread issue of smoking in cars in the presence of children and the government's response to this problem. It focuses on the effects on government policies due to this inconvenience in England. The article refers to the topic of market failure. Market failure in a free market is defined as a condition in which the allocation of goods is done inefficiently, resulting in over- or under-allocation of its resources. Market failures occur due to the presence of externalities. An externality occurs when the production or consumption of a good or service affects a third party, either negatively or positively. There are two types of externalities: negative and positive externalities. This article discusses the issue of negative externalities of consumption. A negative consumption externality is an externality caused by the consumption of a good or service, which negatively affects a third party. The issue discussed in this article points exactly to this problem. Examines the effects of secondhand smoking in the car on children aged 10 to 16. As the government of the specified country realizes the problem related to this practice, it plans to impose a possible ban to ensure the reduction of this pressing problem. To put this issue in context, below is a graph depicting a negative consumption externality. The graph above represents a negative externality of consumption, where the marginal social benefit (MSB) is actually less than the marginal private benefit (MPB) (i.e. MPB > MSB). The quantity (Qe) is consumed at the cost of the price (Pe), being the equilibrium prices and quantities. In relation to the article, cigarette users actually derive personal benefit (in the form of pleasure) from smoking, but smoking (as secondhand smoke) negatively affects the surrounding public. The following are the possible harmful effects of smoking on society: • Passive smoking • Making the surrounding environment unpleasant • Increased mortality rate • Stress on local medical services These effects are represented by the purple triangle in the diagram. This represents the difference between the individual benefit and the social benefit, resulting in a loss of well-being or welfare. Cigarettes are actually demerits, goods that are desirable to consumers and undesirable to the public, but in the given market they are well oversupplied. Since various members of society are affected by this negative externality, the next graph shows the surplus between the equilibrium conditions and the optimal conditions.