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Meaning of externality

Source language: EnglishDictionary language: English

externality

Pronunciation:/ekstəˈnælɪti//ɛkstəˈnælɪti//ɛkstɚˈnælɪti/

noun

Definitions

  1. The state of being external or externalized.

  2. A thing that is external relative to something else.

  3. An impact, positive or negative, on any party not involved in a given economic transaction or act.

    Example: Waste is a negative externality arising from consumption.