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    BP Gulf Oil Spill

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    Discuss the issues of externalities, free-riders and the "broken-window" argument as you think it relates to the BP Gulf oil spill.

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    https://brainmass.com/business/compensation-strategies/bp-gulf-oil-spill-417137

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    Plenty of debate about who should clean up the Gulf of Mexico after the BP oil spill exists.
    Many believe the company itself should take on the entire operation or pay the entire cost. Others
    believe they the effort should be a joint one, with the cooperation of the company and other
    agencies. There is no doubt that the spill has created serious problems for fisherman, wildlife, and
    for the overall well-being of residents and visitors to the Gulf. Some of the problems include loss of
    income for those who have made Gulf fishing and shrimping their livelihoods, contamination and
    disease for marine wildlife, and loss of life for those working on the drilling platform.
    When the actions of one company affect economic conditions for another it is considered
    an externality (Wong, 2000). The explosion and ensuing spill of oil into the gulf has had a dramatic
    economic effect on shrimpers and fisherman in the Gulf. "A new report from NOLA Emergency
    Response, a local emergency response group in the gulf, says that two pounds of shrimp which were
    randomly purchased at a shrimp market in Venice, Louisiana are tainted with oil" (Project Gulf
    Impact, 2011). Many shrimpers believe that even if government ...

    Solution Summary

    The solution discusses the issues of externalities, free-riders and the "broken-window" argument as you think it relates to the BP Gulf oil spill.

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