Consideration - Externalities Flashcards
1
Q
Externalities
A
Defined as “A consequence of an industrial or commercial activity which affects other parties without this being reflected in market prices.”
Basically, the unforeseen effects of something which is not reflected by economic impact.
For example, an externality of burning fossil fuels for power is climate change.
There may be externalities of many geoengineering solutions, and more research is required in an attempt to determine them.
