Externalities are costs or benefits related to an economic transaction between two parties that spill over onto others. They can lead to market failure.

As a result, there are differences between private returns or costs and the returns or costs to society as a whole. In the case of pollution—the traditional example of a negative externality—a ...

As a result, there are differences between private returns or costs and the returns or costs to society as a whole. In the case of pollution—the traditional example of a negative externality—a ...