A government plans to plant a new forest to provide a recreation facility and help combat climate change.
Estimates of the costs and benefits are shown in Table 1.
From the figures in Table 1, it can be concluded that the forest project will have
1 )
negative production externalities of £9 million.
2 )
positive consumption externalities of £16 million.
positive production externalities of £4 million.
4 )
total externalities of £25 million.
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