Question

How can spillovers, or externalities, be both good and bad?

Answer 1

Spillovers can either be negative or positive. Spillovers can cause damage to the environment, And externalities in production can help in cost thereby benefitting the producer.

What are Spillovers?

Spillovers or Spillover effect refers to the impact that seemingly unrelated events in one nation can have on the economies of other nations. It is an event that occurs because something else is unrelated in context.

Spillovers can be negative for the environment when it comes to oil and gas. Economically, however, the spillover effect can have a possible impact on the economy.

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