Negative Externalities Of Cigarette Smoking - 849 Words

I’ve decided to analyze the negative externalities that come from cigarette smoking, particularly the negative externality of second hand smoking, in which a non-smoker, therefore a non-buyer and non-seller, is still inhaling smoke and suffering from it. Worldwide, 40% of children, 33% of male non-smokers, and 35% of female non-smokers were exposed to second-hand smoke in 2004. This exposure was estimated to have caused 379000 deaths from ischaemic heart disease, 165000 from lower respiratory infections, 36900 from asthma, and 21400 from lung cancer.(Ãâ€"berg, 2010). Due to this negative externality, if there is no government intervention, then cigarettes will be overproduced from what is socially optimal. There have been several regulations put on cigarette companies to try to reduce consumption. The first regulation was in 1965 with the Federal Cigarette Labeling and Advertising Act which mandated that cigarette companies must put warning labels on their cigarette packages, as well as submit yearly reports on the health consequences of smoking. The most recent federal regulation was in 2009 The Family Smoking Prevention and Tobacco Control Act which will allows the FDA to lower the amount of nicotine in tobacco products.... Tobacco companies also will be required to cover their cartons with large graphic warnings. (MSNBC, 2009). This helps to correct the negative externalities associated with second hand smoking by one, warning people not to start smoking, whichShow MoreRelatedThe Externalities of Smoking1470 Words   |  6 Pagesincreasing number of countries have imposed a ban on smoking in public places, including restaurants and bars. Unlike other regulations of cigarettes such as tax or promoting ban, this territorial smoking control sparked heated debates. While some argue that the implementation of this regulation is inefficient and reduce the public welfare (Viscusi, 1994; Tollison and Wagner, 1992; Lambert, 2006), others claim that smokers do impose negative externalities to both non-smokers and themselves (Gravelle andRead MoreCases1383 Words   |  6 Pages102 Externalities In our economy, the government is always trying to improve the allocation of resources; one of the methods that improve the allocation of resources in our economy is the alteration of market failures that are caused by externalities. Externalities occur when an external source receives some of the costs of benefits of a certain good that the actual buyer or seller does not receive. There are two sides to externalities; there are both negative and positive externalities. 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