{i} outwardness, quality or condition of being external or directed toward outside or exterior; incidental situation that may affect a course of process or activity; (Psychology) state of being external
an effect of a project felt outside the actual project itself, and not included in the valuation of the project Such effects commonly include damage to the environment or public health
A financial consequence of an economic act that is felt by an unrelated third-party
A cost (or a benefit) of an economic activity by one party that is unintentionally imposed on (or received by) another party without compensation (or payment) and which leads to inefficiencies and/or inequalities in the free market
A secondary or unexpected consequence In economics used to describe costs and benefits not reflected in the price of the good or service giving rise to the externality (such as unregulated pollution)
the situation in which the costs of producing or the benefits of consuming a good spill over onto those who are neither producing nor consuming the good (chapter 15)
A cost or benefit experienced by one economic agent that results from the actions of another agent or agents
Any benefit or cost imposed by an individual, household or firm on another individual, household or firm for which no compensation is paid or received
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
When the cost or benefit of an activity is not captured in the pricing mechanism of the market
Economic cost not normally taken into account in markets or in decisions by market players
(Hackett, 1998, chapter 4) Positive externalities are unpaid-for benefits enjoyed by others in society as a consequence of a buyer/seller transaction For example, when parents pay to vaccinate their children against infectious disease, they create an external benefit -- the reduced likelihood of epidemic -- that is shared by many in society Negative externalities are uncompensated costs borne by others in society as a consequence of a buyer/seller transaction For example, when firms can avoid costly cleanup by polluting, they create an external cost -- the harms created by their pollution -- that is shared by many in society
the quality or state of being outside or directed toward or relating to the outside or exterior; "the outwardness of the world"
An action by one or more persons, firms, or households that affects third parties and for which the third parties don't pay (in the case where the effect is a benefit) or are not reimbursed (in the case where the effect is a cost) {Professor Baird} Because commuting generates congestion externalities and pollution externalities, the marginal private cost of commuting is less than the marginal social cost The internalization of these externalities would increase the relative cost of suburban living, encouraging commuters to live closer to their workplaces {O'Sullivan}
the result of an activity that causes incidental benefits or damages to others with no corresponding compensation provided to or paid by those who generate the externality (Baumol et al , 1988) (S4, II) chinese | russian
Effects of an economic activity not included in the project statement from the point of view of the main project participants, and therefore not included in the financial costs and revenues that accrue to them Externalities represent part of the difference between private costs and benefits, and social costs and benefits Externalities should be quantified and valued, and included in the project statement for economic analysis
a phenomenon that arises when an individual or firm takes an action but does not bear all the costs (negative externality) or receive all the benefits (positive externality)
Occurs whenever there are physical impacts (benefits or costs) of an activity on individuals not directly involved in the activity
Those environmental and social costs or benefits of energy production, delivery, or use which are external to the transaction between the supplier (including the supplier of efficiency improvements) and the wholesale (e g , utility) or retail (e g , ratepayer) customer Externalities are sometimes quantified and expressed in monetary terms
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
A benefit or cost associated with an economic transaction which is not taken into account by those directly involved in making it A beneficial or adverse side effect of production or consumption
Economic benefits of higher education to society which are not captured by the additional average pay received by graduates (the pay premium) and so reflected in the rate of return See Report 8 for more information
the positive or negative effects that result when the production or consumption of a good or service affects people who are not directly involved in the market exchange
Effects on a project, individual or institution resulting from an action by a different project, individual or institution (eg market prices or pollution)
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
occur when the activity of one person has an inadvertent impact on the well-being of another person Many aspects of environmental degradation, such as air pollution, global warming, loss of wilderness, and contamination of water bodies, are viewed as externalities of economic transactions
The principle that economics outside a property have a positive effect on its value while diseconomies outside a property have a negative effect upon its value