externality

externality ex‧ter‧nal‧i‧ty [ˌekstɜːˈnælti ǁ -ɜːr-] noun externalities PLURALFORM [countable usually plural]
ECONOMICS something that is not directly connected to an industrial process or economic activity but has an effect on it:

• Clean-air rules are all about what economists call externalities, with one person's pollution causing problems for others.

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externality UK US /ˌekstɜːˈnæləti/ noun [C, usually plural] (plural externalities)
ECONOMICS damage caused by a company's activities for which it does not pay, or something positive created by it for which it does not receive payment: »

Governments, through laws and regulations, attempt to transfer the costs of externalities such as pollution back to the responsible parties.


Financial and business terms. 2012.

Look at other dictionaries:

  • Externality — Ex ter*nal i*ty, n. State of being external; exteriority; (Metaph.) separation from the perceiving mind. [1913 Webster] Pressure or resistance necessarily supposes externality in the thing which presses or resists. A. Smith. [1913 Webster] …   The Collaborative International Dictionary of English

  • externality — externality, externalities In economic theory it is generally recognized that some of the costs and benefits of economic activities (production, exchange, and the like) are not reflected in market prices. So, for example, air pollution caused by… …   Dictionary of sociology

  • externality — 1713, from EXTERNAL (Cf. external) + ITY (Cf. ity) …   Etymology dictionary

  • externality — [eks΄tər nal′ə tē] n. 1. the quality or state of being external 2. pl. externalities an external thing …   English World dictionary

  • Externality — External redirects here. For other uses, see External (disambiguation). In economics, an externality (or transaction spillover) is a cost or benefit, not transmitted through prices,[1] incurred by a party who did not agree to the action causing… …   Wikipedia

  • Externality — A consequence of an economic activity that is experienced by unrelated third parties. An externality can be either positive or negative. Pollution emitted by a factory that spoils the surrounding environment and affects the health of nearby… …   Investment dictionary

  • externality — A cost or benefit to an economic agent that is not matched by a compensating financial flow. For example, siting a railway station close to a housing estate represents an externality to householders on that estate. It is an external economy if… …   Big dictionary of business and management

  • externality — noun (plural ties) Date: 1673 1. the quality or state of being external or externalized 2. something that is external 3. a secondary or unintended consequence < pollution and other externalities of manufacturing > …   New Collegiate Dictionary

  • externality — /ek steuhr nal i tee/, n., pl. externalities. 1. the state or quality of being external. 2. something external; an outward feature. 3. excessive attention to externals. 4. an external effect, often unforeseen or unintended, accompanying a process …   Universalium

  • externality — noun a) The state of being external or externalized. b) A thing that is external relative to something else …   Wiktionary

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