Externality

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Externality

The cost or benefits of a transaction to parties who do not directly participate in it. Externality can be either positive or negative. For example, a merger can lead to higher share prices and bonuses for employees, benefiting shareholders and employees at the two companies merging, This can create wealth and positively impact a community. On the other hand, the merger can drive a competitor out of business, which results in layoffs and reduced wealth, which can hurt a community. Externality is also called spillover or the neighborhood effect. See also: External benefit, External cost.
References in periodicals archive ?
In 2013, the external cost of fossil fuel-based energy production was equal to $150/ton of carbon dioxide (CO2 ), explained Jochen Wermuth, founder and CIO of Wermuth Asset Management.
Much like the company would burn more coal if its costs did not include environmental harms, the police may likewise engage in more invasive investigative techniques than are desirable if they do not account for the external costs.
Starting from the average amount of energy required for picking up one item from a stockpile, the related average external costs are evaluated by means of equations (13) and (14) in case of Diesel/LPG engine equipped forklifts and electrical powered forklifts, respectively.
However, there is evidence that the social or external costs of this approach to farming more than offsets the lower measured cost.
In this test, we attempted to analyze how the container cargoes would shift among different transport modes in Korea and how much total external costs would be changed if the government formulates more eco-friendly policies internalizing the external cost and levying taxes onto carriers.
If it were only necessary to adjust for the market failures of nuclear energy to decide its future role, then the additional external costs of $7.
Also, we have proved that the annual circulation tax, calculated using our methodology, provide better internalisation of external costs compared to the fuel tax.
From a Pigouvian perspective, a gas tax of 27 cents per gallon would account for the $35 billion in external costs from the average vehicle weight gain since 1988.
They highlight the fact that road transport is responsible for 93% of the total of external costs linked to passenger and cargo transport.
This paper tries to analyze road transportation externalities in Prague, capital city of the Czech Republic, by identifying and estimating external cost of congestion, air pollution, and noise.
The National Academy of Sciences was charged by Congress to "define and evaluate the health, environmental, security, and infra-structural external costs and benefits that are not or may not be fully incorporated into the market price of energy [or] into the federal tax or fee.

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