Definition of Negative externality:
Occurs when a product or decision costs the society more than its private cost. It is generally viewed as a failure of the market because the level of consumption or production of the product is higher than what the society requires. Car pollution is an example of negative externality; as a driver of a car, you dont account for the costs of the air pollution created by the car but the society is paying for the costs of air pollution.
How to use Negative externality in a sentence?
- The woman thought that she would have no issue living next to a paper mill; however, she soon found the negative externality of horrid smells and pollution to be too much.
- There may be a negative externality to your decision that you will have to live with if you go ahead and make it anyways.
- The negative externality was unable to be ignored by the chief executive officer so he ended the business process as we knew it.
Meaning of Negative externality & Negative externality Definition