Encyclopedia of Sustainability in Higher Education

2019 Edition
| Editors: Walter Leal Filho

Internalizing Externalities and Sustainable Development

  • Zita TamašauskienėEmail author
Reference work entry
DOI: https://doi.org/10.1007/978-3-030-11352-0_285

Synonyms

Definition

Internalization of externalities refers to all measures (public or private) which guarantee that unpaid benefits or costs are taken into account in the composition of prices of goods and services (Ding et al. 2014). There are different measures for internalizing externalities: corrective taxes, emission standards, tradable permits, property rights to use resources, government subsidies, etc. Internalizing positive and negative externalities helps to achieve allocative efficiency, but not necessarily sustainability which aims also at more justice in the domain of human–nature relationships.

Introduction

Internalization of externalities and sustainable development are closely related since sustainable development may be ensured by internalizing the complete costs of externalities and long-term stability of the environment. One essential step towards achieving...

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Department of EconomicsSiauliai UniversitySiauliaiLithuania
  2. 2.Regional Development InstituteSiauliai UniversitySiauliaiLithuania

Section editors and affiliations

  • Madhavi Venkatesan
    • 1
  1. 1.Department of EconomicsNortheastern UniversityBostonUSA