Consumption externality

Consumption Externality
Definition Consumption Externality
This occurs when consuming a good causes either a positive or negative externality to third parties.

Examples are pollution from factories (a production externality) and smoke from cigarettes (a consumption externality).
Negative list
In an international agreement, a list of those items, entities, products, etc.

See also: Economic agent, Nominal exchange rate, Production function, Product differentiation, International economics