Are negative externalities necessarily intentional?

1 Answer
Mar 16, 2016

Negative externalities are not always intentional.


Negative externalities can be intentional, but tend not to. For example, let's take a factory that is emitting thousands of cubic feet of smoke yearly. This factory produces a product which has a byproduct of carbon dioxide. Though this is not their fault, they are responsible for the degraded air quality of people living nearby.