British Petroleum Oil Spill Settlement
The article reports the penalties to be paid by BP (British Petroleum) for the oil spill in Gulf of Mexico in 2010 for the resulting damage to environment, costs to the local government and lives of people.
Topics include Market Failure, Marginal Social Cost, Marginal Private Cost, Negative Externalities and Sustainable Development. Explain using diagrams of Negative externalities of Production and Government’s action through penalties and legislation.
Evaluation will cover implications of penalties on Producers, affected parties, current and future irreversible damage to environment, role of Government and the extent of Government Intervention and other preventive methods to counter Negative Externalities in short term and long term.