Chicken Waste and Water Pollution

Chicken waste and water pollution

The  factory production drove down the chicken prices and made chicken accessible to more people. So over past 50 years, the chicken consumption has nearly tripled.  However, the chicken is produced with significant external costs. The poultry manure from raising chickens cause health problems for people. The companies do try to eliminate the animals’ waste by spreading it in open fields or croplands. The problem is that chicken farms have much more manure than can be used for local crops. The large amount of chicken waste is washed off the land into local streams and rivers; therefore, causing the health problems for people because those chemicals from poultry sometimes leak into drinking water.

The cost of producing chicken is much more expensive when the buyers and consumers will take the external costs into account. The private cost + externalities= social cost curve. The private cost of producing chicken is much less than social cost, the cost that everyone else must bear (health problems, payment for medicaments and cure).  Since there are external costs, the market equilibrium for chicken no longer maximizes social surplus (consumer surplus + buyer surplus+ everyone else surplus). The social surplus is maximized at efficient equilibrium, which can be found at intersection of social cost curve and demand curve. As we can see, at the efficient equilibrium there is less quantity produced than at market equilibrium. (The quantity of good consumed is more than the optimal quanity in a market that internalized all costs and benefits).

Leave a Comment