Study Notes
Negative Externalities
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 2 Jul 2018
What are negative externalities?
Negative externalities occur when production and/or consumption impose external costs on third parties outside of the market for which no appropriate compensation is paid. This causes social costs to exceed private costs.
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Revision Flashcards for A-Level Economics Students
Resource Collection
Negative externalities from production
Negative consumption externalities
![](https://tutor2u-net.imgix.net/subjects/economics/micro_negative_externalities_consumption.jpg?auto=compress%2Cformat&fit=clip&q=80&w=800)
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