Refers to a situation in which the actions and decisions of one person or a group of people harm or benefit another person or a group of people. Economic externalities are the non-market effects of economic activities of economic subjects (including manufacturers or individuals) on others and society.
That is, when social members (including organizations and individuals) engage in economic activities, their costs and consequences are not entirely borne by the actors.
It can be divided into positive extension and negative extension. Positive externalities mean that the activities of an economic subject are beneficial to others or society, and the beneficiaries do not have to spend costs. Negative externalities mean that the activities of an economic subject harm others or society, but those who cause negative externalities do not bear the cost.