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18 June, 16:36

What is a positive externality

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  1. 18 June, 18:05
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    A positive externality is a benefit that is received by a third party due to an economic transaction. If someone receives a positive externality, they did not pay for the externality to be received, since it happens from the outcome of something else. A positive externality could be a person who decides to walk places instead of using a car. When the person walks, they are wasting less fuel and polluting the economy so everyone benefits from this positive externality. Though they didn't pay for it, they still received the benefits from it.
  2. 18 June, 19:16
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    Positive externality is a benefit that is enjoyed by a third-party as a result of an economic transaction. Third-parties include any individual, organisation, property owner, or resource that is indirectly affected.
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