externalities

May 9, 2016, 5am PDT
Urbanists, test your knowledge of urban economics. Familiar with the concept of agglomeration externality? Finance professor and Bloomberg View writer Noah Smith opines it's a major reason why American cities are not as productive as they should be.
Bloomberg View
July 10, 2015, 2pm PDT
A wealthy county in Virginia has a reputation for prohibiting the construction of new housing. Development interests, however, are fed up with anti-development arguments.
The Washington Post
June 8, 2015, 7am PDT
A new report from the Congressional Budget Office places the spotlight on the trucking industry in terms of the social, health ,and environmental costs it imposes on society but does not pay for, i.e., externalities.
City Observatory City Commentary
May 20, 2015, 5am PDT
An IMF working paper determined that global energy subsidies totaled $5.3 trillion this year, the worst offenders are China and the U.S. Placing a price on these subsidies, which include air pollution and carbon emissions, may be key to mitigation.
Reuters
March 3, 2015, 9am PST
California's cap-and-trade market saw its largest carbon sale, $1.02 billion, thanks to millions of motorists now paying about a dime a gallon for the right to emit carbon for the first time since the program began in November 2012.
The Sacramento Bee
December 18, 2014, 1pm PST
A blogger writes that bike advocates should think outside the bike lane to bike parking facilities—only when the costs of biking are externalized will a critical mass adopt biking.
Bike Portland
Blog post
July 1, 2010, 11am PDT

(NOTE TO READERS: An expanded, footnote-filled version of this article is online at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1632935 )

 

Externalities are costs (or benefits) imposed on third parties by another individual’s voluntary action.  Government regulations exist at least partially to protect us from externalities created by others.

Michael Lewyn
October 27, 2009, 8am PDT
The National Academy of Science has released a report showing that health effects from burning fossil fuels cost the economy about $120 billion a year. Global warming was not included due to uncertainty, so it's focused mostly on air pollution.
The New York Times - Environment
Blog post
May 20, 2009, 5am PDT

One justification for municipal minimum parking requirements is the danger of “spillover parking”: the fear that if Big Brother does not force businesses to build huge parking lots, that business’s customers will “spill over” into neighboring businesses or residential neighborhoods, thus reducing the parking available to the latter group.  For example, if Wal-Mart doesn’t build a thousand parking spaces, maybe Wal-Mart’s customers will park at Mom’n’Pop Groceries down the street, thus reducing the parking available to Mom’n’Pop customers.

Michael Lewyn