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Term

internalisation of externalities

Term

Incorporation of an externality into the market decision making process through pricing or regulatory interventions. In the narrow sense, internalisation is achieved by charging polluters (for example) with the damage costs of the pollution generated by them, in accordance with the polluter pays principle.

Synonyms:

Source:

EEA Glossary

Context:

Comment

Definition source publication

European Conference of Ministers of Transport. Social costs glossary. CEMT/CS(97)12.

Publication year

Definition source URL

http://glossary.eea.europa.eu/EEAGlossary

Organisation

Organisation full name

European Conference of Ministers of Transport

Subjects

ENVIRONMENTAL INSTRUMENTS

Long definition

Permalinks

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For references, please go to https://eea.europa.eu./help/glossary/eea-glossary/internalisation-of-externalities or scan the QR code.

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