What externalities whether positive or negative come from the automobile industry?

I was thinking on the line of pollution, congestion, I'm not sure about the oil and gas consumption or prices.

Can you add any information or tell me am I on the right track here.:confused:

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Originally Posted by ivory5130

What externalities whether positive or negative come from the automobile industry?

I was thinking on the line of pollution, congestion, i'm not sure about the oil and gas consumption or prices.

Can you add any information or tell me am I on the right track here.:confused:

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That depends on your use of the word : externalities

Automobile pollution (although being addressed and reduced) and traffic congestion (seems metro locales are losing that battle to some extent) are examples of automobile externalities.

Oil and gas prices can be effected by other factors and other industry.
Look at the raw materials consumed in automobile manufacturing.
Then look at the vast number of people employeed in the auto industry. Not just manufacturing, but also the retail side: sales, service, parts... the list goes on.

Weigh this information against the fact that most people use their cars every day, in one way or another.

Are you saying the employment of the workers whom either build or sell the automobiles is considered a positive externalities?

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Originally Posted by ivory5130

Are you saying the employment of the workers whom either build or sell the automobiles is considered a positive externalities?

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Generating creating jobs and adding employees to the work force is generally seen as good thing. So, yes, I personally would see that as a positive externality. It tends to introduce a positive cash flow at it's local level, thus stimulating other sales and services. This can represent one branch of the "trickle down" theory.

The answer was very helpful and gave me a good start on my paper.