externality

Synonyms

external cost,

Definition

Externality / External cost / External benefit Externalities arise from a human activity, when agents responsible for the activity do not take full account of the activity’s impact on others’ production and consumption possibilities, while there exists no compensation for such impact. When the impact is negative, so are external costs. When positive they are referred to as external benefits. (IPCC, 2014)

Externality / External cost / External benefit Externalities arise from a human activity, when agents responsible for the activity do not take full account of the activity?s impact on others? production and consumption possibilities, while there exists no compensation for such impact. When the impact is negative, so are external costs. When positive they are referred to as external benefits. (IPCC, 2014)