What is one effect of carbon emissions as externalities in society?

One significant effect of carbon emissions as externalities in society is the negative health impacts experienced by individuals and communities. Carbon emissions contribute to air pollution, which can lead to respiratory illnesses, cardiovascular diseases, and a range of other health issues. These health effects are often not directly accounted for in the price of fossil fuels; instead, they manifest as increased healthcare costs, reduced quality of life, and lost productivity due to illness.

This connection between carbon emissions and health underscores the importance of recognizing externalities in environmental policy and sustainable practices. By acknowledging the health impacts that result from carbon emissions, societies can better understand the full costs of carbon-intensive activities and may be incentivized to seek cleaner, sustainable alternatives.

In contrast, increased knowledge of environmental issues, informed decision-making by consumers, and improved regulatory frameworks can all be seen as responses to the awareness of externalities like carbon emissions but do not inherently represent the direct societal effects linked to those emissions.