Externality

(redirected from External costs)
Also found in: Dictionary, Thesaurus.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The project specified the environmental impacts database, improved monetary valuation of the protection of cultural monuments related external costs, compared external costs of power plants in the countries and also calculated external costs of road transport for Czech Republic.
EXHIBIT Year One Costs of Sarbanes-Oxley Section 404 Compliance Year One Costs, Estimated in Estimated in March 2005 July 2004 January 2004 Internal Costs* $1,337,935 $1,283,385 $ 613,250 External Costs 1,716,987 1,037,100 732,100 Auditor Feest 1,301,050 823,200 590,100 Total $4,355,972 $3,143,685 $1,935,450 * Internal costs assumes full-time professionals (at 2,000 hours per year) at a compensation rate (salary plus benefits) of $100,000 per year.
The marginal external costs of transport use (4) correspond to the costs caused by an additional transport user that are not borne by the user himself but by others.
The external cost of power generation by fossil fuels, mostly related to the environment and public health, has been shown to be the same or more than the cost of generating electricity by solar power, said an industry expert.
This may also result in a reduction in the external cost incurred by using private vehicles (e.g., environmental pollution, congestion, and fuel consumption) and enhance the efficiency and safety of the transportation system in urban areas.
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.
Currently, an increasing request for more sustainable solutions of logistic issues able to minimize the external costs due to both inbound logistic (material handling, forklift routing, pick orders, etc.) and outbound logistic (packing, shipments, transportation, etc.) has been observed [1,2].
Ecological economists such as Herman Daly write that the more full the world becomes, the higher are the social or external costs of production.
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.
There are also several studies in the literature regarding external costs of transportation.

Full browser ?