If actions cause of the one party adverse effects to the other party by the impact it may cause another to perform better or worse. We call it "the impact from the externalities. The impact from the outside, it has both positive and negative aspects. The purpose of this essay will report to negative externalities effects on the economy. Moreover, explain to why the government has to interference in some cases. In addition, the paper will discuss to the method that can resolve the problem of negative externalities and give some example that occur in real life.