In the case of global pollution, a nation that pollutes gets benefit from production but:

Question

Quizplus · Accepted Answer

In the case of global pollution, a nation that pollutes will not suffer the full costs of its own pollution and so will have little incentive to control it. This is a classic example of an externality, where the cost of the pollution is borne by the global community rather than the nation that produces it. As a result, there is little incentive for that nation to reduce its pollution levels, as it does not have to bear the full cost of the negative impact. In this way, global pollution imposes costs on other nations and on the global community as a whole, making it a problem that must be addressed through collective action and international treaties.

In the Case of Global Pollution, a Nation That Pollutes