Economic Externality

{
  "id": "MLC-T-ENV-008895",
  "term": "Economic Externality",
  "field": "Environment",
  "definition": "1. A consequence of an economic activity that is experienced by unrelated third parties. An externality can be either positive (such as a scenic view) or negative (such as pollution).\n\n2. Effects of resource allocation decisions which are not included in the market mechanism, and as such have no economic influence on resource allocation decisions; failures of the market mechanism as a resource allocation tool. (E. C. T.)\n\n3. A cost or benefit not accounted for in the price of goods or services. Often refers to the cost of pollution and other environmental impacts.",
  "references": [
    "Core Ecosystem Services Research Program Standard Lexicon",
    "USDA Forest Service Wildland Planning Glossary",
    "DOE Office of Energy Efficiency & Renewable Energy Bioenergy Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/economic-externality/"
}