External Cost


Also found in: Dictionary, Thesaurus.
Related to External Cost: External Benefit, Private cost

External Cost

The cost of a transaction to parties who do not directly participate in it. For example, a merger can drive a competitor out of business, which results in layoffs and reduced wealth, which can hurt a community. A transaction may result in a factory opening in one city and one closing in another. An external cost is also called negative externality. See also: Externality.
References in periodicals archive ?
There is a relatively greater decrease in the share of terminal/rail external cost as the door-to-door distances increases.
This translates into external costs of around $78 per one MWh electricity produced by the global power plant mix.
Assuming that the marginal external cost per unit distance of a private highway vehicle trip is e, the average number of passengers of a taxi trip is L.
The aim of this paper is to review and compare external costs of atmospheric pollution and pollution taxes in Baltic States, Czech Republic and Slovakia and assess the level of internalization of external costs and their impact on atmospheric emissions of classical pollutants.
The external costs of enforcement can be roughly analogized to the pollution emitted from a coal plant.
As far as concern the storage configuration in case of racks, the decision variable values that minimize the external cost are very similar independently by the forklifts adopted.
[ec.sub.me] External cost of externality e of transport mode m [US $/TEU-km]
In the case of the replacement of existing nuclear with new fossil fuel power plants, the social cost would range from $66-305/MW-h, depending on the fuel used for the replacement and the external cost of carbon dioxide.
By definition, markets do not include the effects of externalities or external costs. It is therefore important to identify the external effects of production systems and then to quantify their internalization of external costs.
External cost of C[O.sub.2], NMHC, N[O.sub.x] and PM emissions are taken from the Directive 2009/33/EC (European Commission 2009).
Noise has been also identified by the European Commission (EC) as a major source of external cost born by all people living in the affected area (EC, 1996, Green Paper COM 96-540).

Full browser ?