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TeachMeFinance.com - explain Externalities Externalities The term 'Externalities' as it applies to the area of energy can be defined as ' Benefits or costs, generated as a byproduct of an economic activity, that do not accrue to the parties involved in the activity. Environmental externalities are benefits or costs that manifest themselves through changes in the physical or biological environment'. Previous 5 Terms: Extensions, discoveries, and other additions extensometer external forcing External Quality Review Organization External radiation Next 5 Terms: extinct Extinct volcano Extirpated species Extraction loss Extractive industries About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.