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Regional Externalities: an Introduction

In: Regional Externalities

Author

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  • Wim Heijman

    (Wageningen University)

Abstract

Generally speaking, externalities occur when a decision causes uncompensated costs or benefits to individuals or groups other than the person(s) making the decision. Examples of negative externalities are numerous in the area of the environment and natural resources. Some negative externalities result because a particular type of manufacturing technology is used (e.g. water and air pollution caused by industry). Other negative externalities occur because of the transportation system (e.g. air pollution caused by intensive car traffic). Though positive externalities draw less attention than negative externalities, their existence is obvious, for example, beekeepers who provide unpaid pollination services for nearby fruit growers or the positive network effects of a telephone system. The more people who own a telephone, the more useful the device is for each owner (Boardman et al., 2001).

Suggested Citation

  • Wim Heijman, 2007. "Regional Externalities: an Introduction," Springer Books, in: Wim Heijman (ed.), Regional Externalities, chapter 1, pages 1-8, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-35484-0_1
    DOI: 10.1007/978-3-540-35484-0_1
    as

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