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The exposure to second hand smoke during childhood destroyes their arteries and can lead to heart and lung damage . This smoking in parents causes lung cancer and premature death fron conditions such as heart strikes and high blood pressure. It is recommended that these parents stop smoking in order to help make the future of their children better. This consumption of cigarettes causes a negative externality as the children are affected in the near future from second hand smoke. These children whose parents smoke are more likely to smoke as well which continues the cycle of negative externalities of the co sumption of cigarettes.

This is a perfect example of negative externality of consumption. By smoking in public places, the consumer is creating negative externalities, in the form of passive smoking, for non-smokers especially children. When individuals smoke cigarettes, they are compromising their own health as well as the health of those around them who inhale the smoke. I agree with the point that another external cost can be younger children being influenced to smoke following the habits of their smoking parents. This is why cigarettes are considered as demerit goods as they cause significant negative externalities , and these are the goods that the government would like to limit consumption. Individuals may not be aware of the external costs arising from the consumption of the good because of lack of information or myopic behaviour. For the article mentioned above , it is crucial for the state to take on a paternalistic role and curtail consumption

An externality occurs when the production or consumption of a product has an effect on a third party. Although the externality that is generated can be positive, the externalities of consumption generated by smoking are all negative, and this is one of the biggest examples of a negative externality of consumption. Passive smoking poses external costs to third parties in this case children where no appropriate compensation is made.

A thriving black market has cropped up after the NSW prisons smoking ban On the black market cigarettes can cost $300, up from $28 before the ban Prison sources claim that 'an inmate fight broke out over cigarette butts' The ban on smoking in NSW prisons has reportedly led to a thriving black market, where a packet of cigarettes can go for as much as $300, while matches and papers can fetch a staggering $90.

This article has to be about the negative externalities of consumption, as it involves smoking. It affects not only the ones smoking but the others as well. Banning it in a prison can help in bringing the MSC equal to MSB. This also wont affect the tobacco industry as there is still comsumption taking place outside the prison. Banning it has a negative step, which is the creation of the black market. Prisoners are even fighting for cigarrete butts. The government / the prison authority should take a step in taking the ban away and but also making it difficult to obtain cigarettes, to avoid such brawls.

I agree that the negative externality involves non-smokers in the prison getting affected. You suggest that the ban should be taken away, wouldn't this still lead to more people smoking and causing even more second hand smoke to affect the non-smokers? This wouldn't help the situation I believe it would make it worse instead.