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Definitions from WordNet
Noun externality has 1 sense
- outwardness, externality - the quality or state of being outside or directed toward or relating to the outside or exterior; "the outwardness of the world"
--1 is a kind of position, spatial relation
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Definitions from the Web
Term: Externality
Description
An externality refers to an economic concept where the production or consumption of a good or service creates an impact on an unrelated third party.
Senses
- Economics: In economics, an externality is a cost or benefit resulting from an economic transaction that affects individuals or entities that are not directly involved in the transaction. These unintended side effects can be positive or negative and may arise in production, consumption, or distribution.
- Environmental Science: In the context of environmental science, an externality occurs when a person or a company's actions cause either positive or negative effects on the surrounding environment or natural resources.
Usages
- Positive Externality Example: When a company installs solar panels on their building, it benefits the environment by reducing carbon emissions, which is a positive externality for the local community.
- Negative Externality Example: A factory emits pollutants into the air, causing health issues for residents living nearby. This represents a negative externality on the local community.
Sample Sentences
- The government implemented regulations to address negative externalities caused by industrial pollution.
- When a homeowner invests in renovation, it can have positive externalities by improving property values in the neighborhood.
- John accidentally discovered the artwork while renovating his house, creating an unexpected externality that increased its value.
Related Products
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