Entry: externality (external cost, external benefit)
URI: https://data.geoscience.earth/ncl/misc/144
Externalities are costs and benefits imposed on third parties. They are unintentional, and their effects are not conveyed through the price mechanism. Examples of external costs, also called negative externalities, include costs associated with a variety of industrial air pollutants emitted as part of the manufacturing process. When such externalities exist, firms are not held accountable for the damage they cause, production costs exclude the costs associated with the pollutants, and individuals subject to the externality may not be compensated for the damage inflicted on them. External benefits, referred to as positive externalities, generate outcomes beneficial to a third party. Such benefits, which are common in such areas as education and health care, are also unaccounted for by the price mechanism, and are not compensated.
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| date accepted |
8 Aug 2025 13:49:37.612
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| date submitted |
8 Aug 2025 13:49:19.610
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Property
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externality (external cost, external benefit)
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144
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misc
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status experimental
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register item
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2
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Definition
| definition |
Externalities are costs and benefits imposed on third parties. They are unintentional, and their effects are not conveyed through the price mechanism. Examples of external costs, also called negative externalities, include costs associated with a variety of industrial air pollutants emitted as part of the manufacturing process. When such externalities exist, firms are not held accountable for the damage they cause, production costs exclude the costs associated with the pollutants, and individuals subject to the externality may not be compensated for the damage inflicted on them. External benefits, referred to as positive externalities, generate outcomes beneficial to a third party. Such benefits, which are common in such areas as education and health care, are also unaccounted for by the price mechanism, and are not compensated.
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144
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| pref label |
externality (external cost, external benefit)
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| source |
Nas, T.F. (2016) Cost-benefit analysis : theory and application. Lanham : Lexington Books. Available at: http://archive.org/details/costbenefitanaly0000nast_v7n1 (Accessed: 15 May 2025).
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Concept
| Property
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