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Pollution has cost.    Manufacturing activities that cause air pollution impose health and clean-up costs on the whole society, whereas the neighbors of an individual who chooses to fire-proof his home may benefit from a reduced risk of a fire spreading to their own houses. If external costs exist, such as pollution, the producer may choose to produce more of the product than would be produced if the producer were required to pay all associated environmental costs. Because responsibility or consequence for self-directed action lies partly outside the self, an element of externalization is involved. If there are external benefits, such as in public safety , less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others.
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The US EPA estimates that a proposed set of changes in diesel engine technology ( Tier 2 ) could result in 12,000 fewer premature mortalities , 15,000 fewer heart attacks , 6,000 fewer emergency room visits by children with asthma, and 8,900 fewer respiratory-related hospital admissions each year in the United States.