externality
UK: ˌɛkstɜːˈnælɪti | US: ˌɛkstɜːrˈnælɪti
n. an unintended side effect or consequence of an economic activity affecting third parties not directly involved.
n. (philosophy) the quality of existing outside the perceiving mind.
externality = extern<external> + ality<noun suffix>
- extern (from Latin externus, meaning "outside" or "external")
- ality (noun-forming suffix indicating a state or quality, derived from Latin -alitas)
Etymology Origin:
The word externality originates from the Latin externus ("external"), combined with the suffix -ality to form a noun denoting an external condition or effect. It first appeared in economic contexts to describe impacts (positive or negative) borne by unrelated parties, reflecting the logical progression from "external" to "an external consequence."
Pollution is a negative externality of industrial production.
The study examines the social externalities of urban sprawl.
Positive externalities, like education, benefit society as a whole.
The economist argued for taxes to internalize environmental externalities.
Technological spillovers are a classic example of knowledge externalities.