The costs of environmental cleanups absorbed by downstream individuals, companies, or municipalities are referred to as:
A)surrogates.
B)externalities.
C)future impacts.
D)collateral damages.
E)ethical costs.

Question

Quizplus · Accepted Answer

Externalities are costs (or benefits) that affect a party who did not choose to incur that cost or benefit. In the context of environmental cleanups, when the costs are absorbed by downstream individuals, companies, or municipalities, these are considered negative externalities because they are unintended consequences borne by those not responsible for the pollution.

The Costs of Environmental Cleanups Absorbed by Downstream Individuals, Companies