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Externality

usgb/ˌekstɜːrˈnæləti/Volume
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Impact Beyond Choice

An externality involves outcomes affecting those who didn't choose to be involved.

Illustration for Impact Beyond Choice
Residents didn't choose the new highway, but noise pollution is an externality they face.
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Not Always Bad

Externalities can be positive, like a park that beautifies the area for all.

Illustration for Not Always Bad
The new park's beauty is a positive externality for the neighborhood.
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Public Policy Relevance

Governments often step in to correct negative externalities through regulations.

Illustration for Public Policy Relevance
To reduce traffic congestion's externality, the city introduced a carpool policy.
Visual representation of the word "Externality"

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