Explain two possible external benefits of HS2.

External benefits, or positive externalities, occur when the consumption or production of a good causes a benefit to a third party. For HS2: - **Reduced Congestion:** This is a classic external benefit of public transport. Every person who takes the train instead of driving reduces the number of cars on the road, which benefits all other drivers. - **Regeneration:** Large infrastructure projects often spur development in the surrounding areas. This creates a more pleasant environment and economic opportunities for people who may never use the train itself. - **Environmental Benefits:** A shift from cars and domestic flights to electric trains can reduce carbon emissions and air pollution, benefiting society as a whole. - **Increased Labour Mobility:** While a private benefit for the worker and firm, it can also have external benefits by boosting the overall productivity and dynamism of the national economy.