A negative externality for the local environment is more groundwater pollution.
Externality is when either production or consumption activities of economic agents affect those not involved in these activities. Externality can be positive or negative.
A good or service has a negative externality if the costs to third parties not involved in production is greater than the benefits. An example of an activity that generates negative externality is pollution.
When the livestock ranch is built, the rate of pollution of groundwater would increase. This would negatively affect people living close to the ranch. Also, wide life would be negatively affected.
Here are the options:
higher property taxes
less land for development
less use of renewable resources
more groundwater pollution
To learn more about externalities, please check: https://brainly.com/question/26266710
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