We can separate externalities into positive and negative externalities into two parts and they have different effects that affect people. Positive externalities also called external benefit that the company or consumer brings into force as a positive benefit for economic product. For example, using subsidies to protect nature on agricultural land in developing countries is a good example for supporting market efficiency when external benefits exist. On the other hand, negative externalities, also called external costs, for the company or consumer have a negative effect on the economic product. To clarify the negative effect, government-imposed taxes are intended to motivate farmers to protect wildlife habitat on farmland and are a better example of an external cost. To improve land management and wildlife protection in the context of biodiversity, regulatory policies and property rights are needed to encourage landowners and farmers to commit to defending nature
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