Explore Economics

I’ve just found this fascinating video from the amazing TED website which is an excellent example to show how ‘the market’ can can be used to solve an external cost

This video could be used to illustrate how the market really can be used to solve one of the major issues in externalities- looking at the over-use of a water supply. As with all TED talks, it’s very well-presented, interesting, and informative. Here’s the synopsis of what the video is about:

‘With streams and rivers drying up because of over-usage, Rob Harmon has implemented an ingenious market mechanism to bring back the water. Farmers and beer companies find their fates intertwined in the intriguing century-old tale of Prickly Pear Creek.’

If you haven’t checked out the TED website before, I strongly encourage you to do so. There are so many fascinating videos on a massively diverse selection of topics.

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