Difference between revisions of "Externalities"
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(Created page with "Externalities are factors that should go into a decision or are affected by a decision, but are not part of the decision making process. Any effects on them are externalized....") Tag: 2017 source edit |
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Externalities are factors that should go into a decision or are affected by a decision, but are not part of the decision making process. Any effects on them are externalized. | Externalities are factors that should go into a decision or are affected by a decision, but are not part of the decision making process. Any effects on them are externalized. | ||
In current structures, externalizing as much as possible is incentivized. If a company can externalize the damage from pollution caused by their production outside of their balance sheet, they make more profit. Striving to make more profit is commendable economic behavior. | In current structures, externalizing as much as possible is incentivized. If a company can externalize the damage from pollution caused by their production outside of their balance sheet, they make more profit. Striving to make more profit is commendable economic behavior. | ||
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Latest revision as of 09:15, 14 August 2021
Externalities are factors that should go into a decision or are affected by a decision, but are not part of the decision making process. Any effects on them are externalized. In current structures, externalizing as much as possible is incentivized. If a company can externalize the damage from pollution caused by their production outside of their balance sheet, they make more profit. Striving to make more profit is commendable economic behavior.