Social benefits ("goods") and social costs ("bads") not included in the market price of an economic good. See external benefit, external cost. Compare full cost, internal cost.
Benefits or costs generated as the result of an economic activity, that do not accrue directly to the parties involved in the activity. For example, environmental externalities are benefits or costs that manifest themselves through changes in the physical or biological environment regardless of the relationship of the parties to the environmental regime impacted.
are costs or disadvantages that the activity (or lack there of) of one agent imposes upon another, in the absence of any financial compensation. That is, the use or non-use of a good or service affects the conditions of neighbours. Externalities may be negative or positive. For example, the non-vaccination of a herd against FMD facilitates transmission to other herds.
Spillover benefits or costs arising from an economic activity that are not taken into account by producers, resulting in levels of production that are inappropriate from the standpoint of the economy as a whole. The presence of "positive externalities" or external benefits means that insufficient resources will be devoted to producing the product in question unless incentives (e.g., subsidies) are given to producers. For example, one of the important positive externalities affecting trade in high-technology products involves private research and development (R&D) activities, since firms may be unable to completely appropriate for themselves the payoffs from their R&D investments. In contrast, negative externalities (sometimes called "diseconomies") imply overproduction unless the activity is appropriately taxed or otherwise constrained by governmental authorities. Unchecked pollution by manufacturers is a commonly cited example of negative externalities.
Effects of a program that impose costs on persons or groups who are not targets.
uncompensated side effects of human actions. For example, if a stream is polluted by runoff from agricultural land, the people downstream experience a negative externality.
Effects on a project, individual or institution resulting from an action by a different project, individual or institution (eg market prices or pollution).
The principle that outside influences may have a positive or negative effect on property value.
Economic side effects or third-party effects, in which some of the benefits or costs associated with the production or consumption of a product affect someone other than the direct producer or consumer of the product. View Capstone Lesson(s) that address this concept
According to one source, "a technological externality is the indirect effect of a consumption activity or a production activity on the consumption or production possibilities available to some other consumer or producer" ( http://www.sfb504.uni-mannheim.de/glossary/external.htm?mark_id=cache%3A3&mark_low=0&mark_high=5). For environmental purposes, an externality is a cost inflicted on the environment--and indirectly on those who use or depend on the environment--not borne by those who inflict the cost.
Costs or benefits that impact society but are not included in the market price of a good or service. Pollution is an example of a negative externality. Education is an example of an externality benefit when members of society other than students benefit from a more educated population. Externality is one type of market failure that causes inefficiency.
The principle that economies outside a property have a positive effect on its value while diseconomies outside a property have a negative effect upon its value.
costs (or benefits) arising from the decisions of an individual which impact on people other than that individual, for example, the costs of salinity that may arise downstream as a result of the agricultural practices used by a farmer upstream
The consequences or impacts of resource decisions that are not directly accounted for in the price paid for the resource.
The impacts and effects that are not a consequence of reductions in emissions or improvements in air quality per se, but occur as a result of the actions such as the health benefits that accrue from a modal shift in transportation.
A cost or benefit not accounted for in the price of goods or services. Often "externality" refers to the cost of pollution and other environmental impacts.
Externalities arise when one party imposes on others costs or benefits which are not reflected in market transactions. For example, 'negative' externalities such as noise and air pollution from trucks impose costs on residents near highways, but there is no market transaction between residents and the users of the truck services.(2)
Costs not routinely recorded in financial balance sheets. For example, costs associated with turning wetlands into urban development or releasing effluent into oceans. Some Organisation for Economic Cooperation and Development (OECD) countries are working towards ‘internalising' all marginal costs including environmental costs in decisions that affect water use. Whilst progress has been made in Australia, full implementation remains some way off.
Effects of a person's or firm's activities on others which are not compensated. Externalities can either hurt or benefit others- they can be negative or positive. One negative externality arises when a company pollutes the local environment to produce its goods and does not compensate the negatively affected local residents. Positive externalities can be produced through primary education- which benefits not only primary students but also society at large. Governments can reduce negative externalities by regulating and taxing goods with negative externalities. Governments can increase positive externalities by subsidizing goods with positive externalities or by directly providing those goods.
By-products of activities that affect the well-being of people or damage the environment, where those impacts are not reflected in market prices. The costs (or benefits) associated with externalities do normally not enter standard cost accounting schemes.
the costs or benefits of a transaction that are borne by someone not directly involved in the transaction
in economics, unintended side effects which can have positive or negative consequences (258)
Positive or negative effects that spill over from a transaction to affect third parties, and that are not internalised in prices.
A secondary or unexpected consequence, often measured in an economic sense in terms of impacts.
are essentially activities whose full, cost or benefit is not incorporated into an economic decision; hence they lead to sub-optimal social allocation.
refer to a cost or benefit that arises from an economic transaction and that falls on people who may or may not have participated in the transaction
Unpriced spill-over effects from production or social activity, which fall on other users of that resource or on the community
A cost or benefit that occurs when the activity of one entity directly affects the welfare of another in a way that is outside the market mechanism.