Externalities and Oil Firms?

hi, im doing my microeconomis project which is "globalization effects on Petronas". When the the firm digs up oil, suppply decreases, so in the long-run, price will rise and therefore cause a problem for consumers. But at the same time, this encourages research on other cleaner source of energy and also of course the hybrid car. So is the negative externality, the high price effect on consumers and the positive externality is in education(new technology) and less pollution(less carbon dioxide emission)? If yes, can you guys out there please give me more ideas of externalities by oil firms. If no, please correct me and also give me more ideas.


(would appreciate good websites for referencing or can just give me idea and i search myself for evidence)





Thanks. ^__^

Externalities and Oil Firms?
Hi, I am not sure if this helps, since it is vaguely to the side of what you are asking about. I do think that the encouragment of research is much less direct than regarding the depletion of supplies. Also I think that the use of oil has a wide variety of hidden costs to the environment (in bvery many levels) , health ( also on many levels like accidents, pollution, sedentary lifestyle)





But regarding oil/gasoline and externalities, try to do a web-search for


"The Real Cost of Gasoline", "Transportation Cost and Benefit Analysis" and "External Costs of Transport, Update study".