Industrial waste can harm the environment and public health while shifting the costs of pollution from producers to affected communities. This study examines the negative externalities associated with industrial waste, the external costs they generate, and the government’s role in controlling these effects. It adopts a qualitative literature-review approach, using secondary data from relevant scholarly articles and descriptively comparing previous findings. The review indicates that inadequate waste management contributes to water and air pollution, unpleasant odors, health problems, and disruptions to daily life. Communities often bear the resulting costs, including medical expenses, purchases of clean water, and environmental restoration. The study argues that effective control requires clear environmental regulations, consistent monitoring and enforcement, and economic instruments such as Pigouvian taxes, subsidies, and payments for ecosystem services. These measures can encourage industries to internalize environmental costs and support sustainable development.
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