Environment Statistics
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         Environment Glossary



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Term
Environmental Externalities
Description economic concept of uncompensated environmental effects of production and consumption that affect consumer utility and enterprise cost outside the market mechanism. As a consequence of negative externalities, private costs of production tend to be lower than its "social" cost. It is the aim of the "polluter/user-pays" principle to prompt households and enterprises to internalize externalities in their plans and budgets. See also economic instruments and internalization of environmental costs.