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Considering externalities with the example about the Keystone

01 / 10 / 2021 Projects

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Considering externalities with the example about the Keystone

Question:Considering externalities with the example about the Keystone XL pipeline.a. Fully describe the situation involving the Keystone XL pipeline as a market decision with externalities attached, or potential externalities attached. Use a supply and demand graph to illustrate your points.b. In the context of your externality example, if the pipeline is built, who are the “losers” i.e. those impacted negatively by the externality? Who are the winners? Be careful because not all of the winners and losers are companies or corporations.c. Is there a reasonable way for the “winners” of the pipeline to compensate the “losers”.



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