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Concept information

social science subjects > business and management > business ethics > business regulation > socially efficient regulation of pollution externalities

Preferred term

socially efficient regulation of pollution externalities  

Definition(s)

  • In economics, an externality is a benefit or cost that accrues to some entity that is a third party to the market transaction. Because under an externality the market price of the good will reflect the benefits and costs of the buyers and sellers of the good but will not incorporate the costs or benefits affecting the bystanders affected by the production or consumption of the good, the market will generally fail to provide these goods in socially optimal quantities. [Source: Encyclopedia of Business Ethics and Society; Pollution Externalities, Socially Efficient Regulation of]

Broader concept(s)

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URI

http://data.loterre.fr/ark:/67375/N9J-S0CLRFGS-D

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