What are the externalized costs?

externalized costs are negative impacts associated with economic transactions that relate to people outside these transactions, which means that neither the buyer nor the seller bears the onslaught of costs. One of the known examples of externalized costs is the factory pollution, which can have a negative effect on the surrounding community. Many activists raised concerns about externalized costs, suggesting that some economic systems might need to reform to deal with them, and some consumers join the choir and apply for a reform of the way people and companies do business. Externalities can be good or bad and are incredibly diverse. In general, people use the term 'externalized costs' to describe externalities that are negative, while the "externalized benefits" are good. Externalities are often negative and positive at the same time that can create a quite tangled network of problems.

Externalized costs of pollution include: Resources exhaustion, climate change and health problems, among other things. Some externalized costs are a bit difficult to control; For example, exhaustion of resources can be challenging in combat when the company sees the demand for the product and wants to fulfill it, and pollution is an unfortunate side effect of the most important production, even in relatively "clean" factories. Others may be intentional by the parent company, as is the case with companies that do not provide benefits to their employees and rely on the company in general to support their employees.

The environment is often the victim of externalized costs. In the case of externalized costs such as health problems caused by pollution or using various products, individuals or groups, they may decide to promote justice from a company that sold the product or people who bought it, and most legal systems provide in these situationsDocumentation. However, the environment is a quiet entity, which makes it difficult to bring a lawsuit on behalf of the environment.

Many countries have established environmental agencies and many of these agencies are working to reduce the impact of externalized environmental costs in order to protect living individuals and future people in the country. The increasing consumer awareness of externalized costs also led to an increase in pressure to many companies to reform their business practices to create less costs and more benefits.