Introduction
The article “Sea pollution posing severe threat to marine life” by Business Recorder records that fish species are killing in the coastal areas due to the increasing industrial chemical toxins from Lyari Nadi in Karachi port's navigational channel. Besides, the marine life and the fishermen of the inhabited islands are facing a severe threat of that pollution. According to the article, Mr. Bhatti who is the President of Bona Fide Fishermen and Boat Owners Welfare Association urged the concerned authorities to step up to protect mangroves and marine life against the industrial deadly pollution.
This report examines the contents of the article using the technique of externality. The remainder of the report is organized as follow: section2 states an analysis of the result of government fail to protect the sea, section3 provide some available Protection methods for government, Section 4 shows origin of industrial chemical toxins pollution, Section5 identified the seriousness of Sea pollution phenomena. In the end, a summary and comments are provided at the end of the report.
Section 2: An analysis of the result of government fail to protect the sea
According to MC Taggart et al. (2010, p. 200), the definition of externality is the situation in which the costs of producing or the benefits of consuming a good spill over onto those who are neither producing nor consuming the good.
When the phenomena of unregulated in an appearance, the hazardous chemical will be spewed into the sea by industries of site area. The results of the government had failed to scale down with effective policies is the pollution not only kills the fish species directly but also has a threat to the marine life and fishermen of the inhabited islands. From the article, Mr. Bhatti said that the ‘fishermen were facing severe diseases particularly skin, eyes, breathing problems because of the seawater had badly been contaminated by the industrial waste’, also he citied that ‘the marine creatures living on the seabed including shells or mud-crabs were also being affected by the rising sea pollution’.
Figure1As shown above in the figure1, the supply curve is the marginal social cost curve and. the demand curve is the marginal social benefit curve. The figure1 presented that market equilibrium point of the P1 and Q2 is inefficient because marginal social cost exceeds marginal social benefit and the efficient quantity point is Q1 not Q2. The grey triangle shows the deadweight loss, which created by the pollution in this article.
Section 3: Available Protection Methods for Government
There are three main methods that governments can consider to use in order to cope with externalities in this article, which are taxes, emissions charges and marketable permits.
Method 1: Taxes
Taxes can give an incentive to push pollution producers solve the\ industrial chemical spill problem. This sort of technique called Pigovian taxes.
Figure 2The pollution tax is imposed equal to the marginal external cost of pollution. The supply curve becomes the marginal private cost curve, MC, plus the tax –S=MC +TAX, Market equilibrium is at a price of P1 a tonne and Q1 tonnes of chemical a month and is efficient because marginal social cost equals mariginal social benefit. The government collects tax revenue shown by the purple rectangle.
Method 2: Emissions charges
Emissions charges are an alternative to a tax for confronting a polluter with the external cost of pollution. The government sets a price per unit of pollution. The more pollution a firm creates, the more it pays in emissions charges. However, to work out the emissions charge that achieves efficiency, the government needs a lot of information about the polluting industry that, in practice, is rarely available.
Method 3: Marketable permits
Instead of taxing or imposing emissions charges on polluters, each potential polluter might be assigned a permitted pollution limit. Each firm knows its own costs
