What is in economics, what is positive externality?

Positive externality is a type of advantage that brings for parties that have not been directly involved in the original transaction, a kind of other advantage. With this type of event, the buyer and the seller acquire directly involved the benefits of the activity, but the nature of the transaction itself has a positive impact on others who have some type of connection with the buyer or seller. This phenomenon can occur in a wide range of settings, with commercial and personal actions starting some type of positive externality. By strengthening the equipment associated with buildings on the plot, such as improving landscaping that helps this area more attractive and attractive, there are benefits at several levels. The owner of the property has the advantage of a more attractive property, which is likely to be considered Worth more on the housing market. At the same time, the landscape painter benefits from paying for work. Over and behind these two parties, the owners of the surrounding property benefit because the improving the landscape also have a positive impact on their properties, even if the taskThey did not contribute anything.

In the business environment, a positive externality may occur when the company decides to improve the operation of the plant that helps reduce the amount of waste and pollution generated in the business operation. For example, if smoke filtration systems are installed in the Papripas Mlyn, the company owner is likely to benefit from getting government tax relief into this activity. The company that produced filter systems also benefits from sale to the paper mill. Along with these direct advantages, people also have a luminum in the general vicinity of a paper mill, because the vapors and gases that are issued from the plant are very reduced, allowing them to enjoy cleaner air and less health risks, even if nothing helped to buy and install filters.

occasionally has a positive externality that is generated by some type of transaction, far -reaching effects thatThey provide benefits to future generations and to those who live today. As in the case of filter systems, a cleaner environment that is installation means that people living in this area in later decades will still enjoy the benefits of the transaction, even if they were not installed at the time when the systems were installed or maybe they were born. In this sense, the reality of positive externalities can be considered as one of the ways of being created for later generations and maintaining from one era to another.