This occurs when the production or consumption of a good or service imposes costs on a third party who did not benefit from it. For example, a factory that pollutes a river negatively impacts the health and well-being of the downstream communities.
This occurs when the production or consumption of a good or service imposes costs on a third party who did not benefit from it. For example, a factory that pollutes a river negatively impacts the health and well-being of the downstream communities.