When pollution affects someone or something not involved in the activity that deuces the pollution what is this effect called?

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1125273

2026-08-04 15:10

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This effect is called "externality," specifically a negative externality. It occurs when the actions of individuals or businesses lead to adverse effects on third parties who are not directly involved in the activity, such as air or water pollution impacting the health of nearby communities. These external costs are not reflected in the market prices of goods or services, leading to a market failure.

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