Source: Technology and Infrastructure Policy Journal, 2023
...The rapid proliferation of hyper-scale data centres to support cloud computing and artificial intelligence has sparked intense debate among environmental and economic planners. While these facilities drive technological advancement and digital services, their massive operational scale inevitably generates significant spillover effects that impact non-consenting third parties, including local communities and regional resources...
Explain what is meant by the term 'externalities' (Extract C) and analyse how the expansion of hyper-scale data centres can create both positive and negative externalities.
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.