What is the issue? I have been researching water pollution and it effects. Water is an important resource for humans and wildlife. When water becomes contaminated by waste it affects a person and wildlife health. It also destroy habitats as well. What externalities does the issue raise? Externalities are effects to third parties. They are not the direct impact, but the effects of that impact. For example, if drinking water is contaminated, people get sick, call into work, and then that business has to make up for their absence.
When we have water pollution, people and wildlife come in contact with water on everyday bases. When the water is polluted and people and wildlife consume it, it causes a rippling effect. The person or wildlife health is in jeopardy and when that happens the person or wildlife will need to go to the doctors and spend money they do not have.
Second, it effects the fishing industry because if the water is polluted then fish and other aquatic animals will not frequent that area and then the fishermen would not catch fish for them to sell and make a profit. Third, the local government would have to hire a company to clean up the mess in which it would cost a lot of money. Fourth reason is tourism, when a place has water pollution then the tourist will visit somewhere else. Then the businesses will lose money and cause a lot of problems like bankruptcy.