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The natural world. Looking pretty for 3.5b years.

External to What?

An externality is a cost not transmitted through a product's price to a consumer. It should be.

Author: Hugh Bollinger/Sunday, March 10, 2013/Categories: sustainability, environment, Archive Pick of the Week

Externalities are just that, external to an analysis or model. They shouldn't be.

An externality is a cost that is not transmitted through a product's price to a consumer. In the case of environmental externalities, effects such as air and water pollution, species extinction, and loss of soils, they are all negative. They are now becoming central to how best to control carbon pollution proactively and effectively.

Shi-Ling Hsu is an instructor at Florida State University and an expert in environmental and natural resource law, climate change, and economics. He has taken a big step forward with his book: The Case for a Carbon Tax in addressing the existential externality of carbon pollution and the lack of its proper pricing. In a post from his law school, Hsu summarizes the points he believes would move us forward to an:

Effective Climate Policy, The Case for a Carbon Tax

Economics and product pricing models may not be at the top of your reading list but you should be interested in their external affects on environmental sustainability.


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