Statement A:
"The municipal authority invested £4.2 million in constructing a dedicated network of urban green corridors and pocket parks across the city center. Residents who visit these parks report improved mental well-being and higher physical activity levels."
Statement B:
"Because of the increased vegetation and tree canopy, urban ambient temperatures during summer heatwaves decreased by 2°C. This microclimate regulation benefited all local residents and businesses by lowering air conditioning costs. Furthermore, local medical practices reported a drop in heat-related emergency admissions among elderly residents who did not personally visit the parks."
With reference to the statements above, explain what is meant by external benefits.
54 exam-style questions on Edexcel A A Level Economics 1.3.2 Externalities. Each one has a worked solution and a mark scheme showing where the marks go.