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Topic: External cost

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	Cost - Wikipedia, the free encyclopedia
		Opportunity cost, also referred to as economic cost is the value of the best alternative that was not chosen in order to pursue the current endeavour--i.e., what could have been accomplished with the resources expended in the undertaking.
		Its external costs (also called externalities), in contrast, are the costs that people other than the buyer are forced to pay as a result of the transaction.
		A psychic cost is a subset of social costs that specifically represent the costs of added stress or losses to quality of life.
	en.wikipedia.org /wiki/Cost (466 words)

	Externality - Wikipedia, the free encyclopedia
		From the perspective of anybody affected by the externality, it is either a negative factor in their lives, as with obnoxious smell or pollution or a boon, as with the other's pretty clothes.
		The value of the effects of the externality are likely not something that can be easily calculated in a technocratic way by economists or social planners, since they reflect the ethical views and preferences of the entire population.
		The marginal private cost is less than the marginal social or public cost by the amount of the external cost, i.e., the cost of the smoking stacks and water pollution.
	en.wikipedia.org /wiki/Externality (2272 words)

	Climate Change 2001: Mitigation
		The term external cost or externality is used to define the costs that arise from any human activity when the agent responsible for the activity does not take full account of the impacts on others of his or her actions.
		External costs are distinct from the costs that the emitters of the particulates take into account when determining their outputs, costs such as the prices of fuel, labour, transportation, and energy.
		External costs typically arise when markets fail to provide a link between the person who creates the “externality” and the person who is affected by it, or more generally when property rights for the relevant resources are not well defined.
	www.pnl.gov /aisu/pubs/eemw/papers/ipccreports/workinggroup3/274.htm (426 words)

	External cost - Wikipedia, the free encyclopedia
		It is the opposite of an external benefit and is often called a "negative externality." In a voluntary economic transaction between person X and Y, an external cost may be imposed involuntarily on individual Z, violating their freedom of choice.
		The full cost of an activity is often called the social cost and includes the cost to the individual cost plus the external or spill-over cost.
		Not only does producing something sometimes involve an external cost, but consumption can also have this kind of cost: consider the cost to you if your neighbor plays his or her music too loud at 2 a.m.
	en.wikipedia.org /wiki/External_cost (259 words)

	Estimating the External Costs of Driving in San Francisco (Site not responding. Last check: 2007-10-20)
		These costs are known as "external costs" or "externalities." Significant externalities include deaths and illnesses due to air pollution caused by vehicles; traffic congestion that causes lost time and wasted fuel; deaths and damages due to accidents; and the costs to government to provide road construction, maintenance, police, ambulances, street lighting, traffic signals, and more.
		Because this time cost is borne by other drivers, not the decisionmaker, this cost is external to the individual's decision to drive.
		The external costs associated with congestion can be estimated by calculating the total time lost and the additional fuel cost due to congestion in San Francisco and placing a value on that time and fuel.
	www.spur.org /documents/050901_article_02.shtm (2326 words)

	Quality improvement technology using the Taguchi method. (CPA in Industry)
		After the external failure cost of customer dissatisfaction has been measured, it can now be weighed in with internal failure, prevention and appraisal costs, thereby, completing the quality-cost equation of the company.
		The average cost calculated can then be multiplied by the total number of widgets produced to obtain an estimate of the total external failure cost attributable to customer dissatisfaction.
		The present value of the annual reduction in external quality failure cost over the useful life of the new machine is then compared to the purchase cost of the new machine and a decision made.
	www.nysscpa.org /cpajournal/old/14903851.htm (2583 words)

	Untitled Document
		A cost due to an action that is born by someone else whose permission the actor does not have to obtain in order to take the action.
		xternal costs are a problem because the actor considers only his costs and benefits in deciding whether to take an action, hence may take some actions whose costs, external costs included, are larger than their benefits.
		External benefits are a problem because the actor may fail to take some actions whose benefits, external benefits included, are larger than their costs.
	www.daviddfriedman.com /Academic/Course_Pages/L_and_E_LS_03S/midterm_2003_w_answers/L_andE_LS03_Midt_ans.html (1155 words)

	[No title]
		Externality: a cost or benefit for a party not directly involved in a transaction.
		Externalities can be negative, if a cost is imposed on a third party, or positive, if a benefit is accrued by a third party.
		Pigou tax: a tax that charges a polluter a per-unit fee equal to the marginal external cost of the (Q)th unit, where Q is the optimal amount of the good to produce.
	www.csun.edu /~dgw61315/PThand10.doc (386 words)

	External cost adjustment - August 26 meeting (Site not responding. Last check: 2007-10-20)
		This memo is intended as an overview of the external cost adjustment issue for purposes of background for the Committee’s August 26 meeting.
		MAP’s “External Cost Adjustment” issue report of February 18, 1998 indicated that there should be a periodic adjustment to the MAP model to account for the effects of inflation over time as the model prototypes, by law, are based upon school year (SY) 1996 - 97 expenditure data.
		Assume the Legislature authorizes a 2% external cost adjustment for “new” inflation for SY 2000-01.
	legisweb.state.wy.us /school99/eca-mary.htm (1345 words)

	What is the difference between private and social costs, and how do they relate to pollution and production? (11/2002)
		External costs are directly associated with producing or delivering a good or service, but they are costs that are not paid directly by the producer.
		The social costs include all these private costs (fuel, oil, maintenance, insurance, depreciation, and operator's driving time) and also the cost experienced by people other than the operator who are exposed to the congestion and air pollution resulting from the use of the car.
		When significant external costs are associated with a good (or service), then the price of the good is too low (because external costs are not being paid) and its output level is too high, relative to the socially efficient rate of output for the good.
	www.frbsf.org /education/activities/drecon/2002/0211.html (1186 words)

	ipedia.com: Externality Article (Site not responding. Last check: 2007-10-20)
		Sometimes, externalities are called "neighborhood effects" or "spillovers" but it should not be thought that all externalities are small, spilling over only in the "neighborhood." For example, the burning of hydrocarbons likely affects the entire neighborhood of the Earth, encouraging global warming.
		Externalities can be illustrated on a standard supply and demand diagram if the externality can be monetized (valued in terms of money).
		The issue of external benefits is related to that of public goods, i.e., goods where it is difficult if not impossible to exclude people from benefits.
	www.ipedia.com /externality.html (1858 words)

	Cisco - OSPF Design Guide
		The metric is the cost we are assigning to the external route.
		The cost of a type 2 route is always the external cost, irrespective of the interior cost to reach that route.
		A type 1 cost is the addition of the external cost and the internal cost used to reach that route.
	www.cisco.com /warp/public/104/1.html (11789 words)

	Externalities: A Primer
		Sheila quickly determines that the opportunity cost to her of letting them do so is one minute -- that's the time she would gain if she didn't let them cut in line.
		The social cost of a good or activity includes both the opportunity cost to you plus any external costs imposed upon others.
		One solution would be for her to soundproof her room at a cost of $850, but a cheaper one would be for you to buy a pair of $2 ear plugs.
	www.econoclass.com /externalities.html (1582 words)

	[No title]
		TCI argues that the Bureau: (1) incorrectly rejected TCI's external cost treatment of a franchise-required relocation of cable; and (2) mistakenly upheld the City's decision to "refresh" TCI's inflation figure after TCI made its initial rate filing.
		When determining which franchise requirements are recoverable as external costs, the Commission asks whether they are specifically enumerated in the franchise agreement, and whether they produce costs that an operator would not have incurred without a franchise requirement.
		Also, a cable operator's control over the cost of a franchise requirement is not an exclusive criterion for granting external cost treatment.
	www.fcc.gov /ftp/Bureaus/Cable/Orders/1998/da981056.txt (1243 words)

	[No title]
		False 11) The cost of producing one more unit of a good or service that is borne by the producer has to be equal to the benefit that the consumer derives from that good.
		False 12) The cost of producing an additional unit of a good or service that is borne by the producer of that good or service is called the marginal external cost.
		False 20) The cost of producing an additional unit of a good or service that is borne by the producer and by everyone else on whom the cost falls is called the marginal external cost.
	web.syr.edu /~agrodner/teaching/ecn101_fall2003/ch18questionstf.doc (522 words)

	Reason magazine -- November 1999
		The current rage for externality arguments may seem like a victory for economic reasoning--at least people are taking the idea of markets into account--but it actually has little to do with the economic world of trade and tradeoffs.
		To deal with externalities, therefore, Coase argues for putting the burden where the cost is least.
		You cannot declare that conjectural, unquantified costs, such as aesthetic considerations, are infinite, but real, private market costs, such as more expensive houses, don't count.
	reason.com /9911/ed.vp.external.html (1192 words)

	EUROPA - Research: press release of 20 July 2001 on New research reveals the real costs of electricity in Europe
		A major EU funded research study undertaken over the past 10 years has proven that the cost of producing electricity from coal or oil would double and the cost of electricity production from gas would increase by 30% if external costs such as damage to the environment and to health were taken into account.
		The report also says that nuclear power involves relatively low external costs due to its low influence on global warming and its low probability of accidents in the EU power plants.
		For example, if the external cost of producing electricity from coal were to be factored into electricity bills, between 2 and 8 cents per kWh would have to be added to the current price (this is true for the majority of the EU Member States).
	europa.eu.int /comm/research/press/2001/pr2007en.html (677 words)

	CoreBuilder 9000 Implementation Guide
		When a the router receives an external link state advertisement, it consults its routing policies to determine if the route specified in that advertisement matches any of the defined policies criteria, and, if so, applies to the route the actions that are defined by the policy.
		The routes are advertised with the cost and the external metric type defined by the policy.
		As a result the router advertises the interface over the network as a Type 2 external metric with an associated cost of 12, overriding the external metric type and cost that are defined for the interface in the system's routing table.
	support.3com.com /infodeli/tools/switches/cb9000/product/10012688/9i3osp14.htm (2330 words)

	[No title] (Site not responding. Last check: 2007-10-20)
		An externality is a cost or benefit that arises from production and falls on someone other than the producer, or a cost or benefit that arises from consumption and falls on someone other than the consumer.
		Marginal external cost is the cost of producing one more unit of a good or service that falls on people other than the producer.
		Marginal social cost is the marginal cost incurred by the entire society—by the producer and by everyone else on whom the cost falls—and is the sum of marginal private cost and marginal external cost.
	staffwww.fullcoll.edu /aturner/ch18.doc (2356 words)

	Riverstone Routing Model
		The OSPF cost from Router A to the ASBR that redistributed the External.
		It is appropriate to use Type 1 Externals when the external cost of the route is comparable with the OSPF costs.
		For Type 2 Externals, the external metric is ignored and the cost of the route is equal to the cost to reach the ASBR that redistributes it
	www.riverstonenet.com /support/ospf/externals.htm (863 words)

	[No title]
		The cost of the water pollution is A) zero for the firm.
		C) marginal external cost of producing a ton of cement is $500.
		D) marginal external cost of producing a ton of cement is $7,500.
	www.aug.edu /~sbajmb/EconTestbank/ch09.doc (5124 words)

	BECH9 (Site not responding. Last check: 2007-10-20)
		But "cheapest" may actually be the more expensive because we must include the "external costs" also.
		External costs are part of the cost of production.
		If the savings in damage is greater than the additional cost of providing the reduced pollution, then benefit exceeds the cost.
	www.sctechsystem.com /tctc/fgarland/bech9.htm (685 words)

	HB0015 - School finance-external cost adjustment. (Site not responding. Last check: 2007-10-20)
		2 the cost of education study, dated April 1997, and the
		23 attributable to the external cost adjustment computed under
		3 under the external cost adjustment pursuant to W.S. 4 21-13-309(o) shall be restricted to salary adjustments.
	legisweb.state.wy.us /2001/introduced/hb0015.htm (243 words)

	What is a common form of external cost, (Site not responding. Last check: 2007-10-20)
		One common form of external cost is pollution, the reason for the high cost is the process to remedy the provlem.
		These cleaning devices cost a fortune and in turn cause a high external cost.
		The first advantage would be that it avoids setting the effluent charges at the proper level, and the second is that there would be a limit on the number of total permissible discharges.
	www.ssu.missouri.edu /courses/ws97/agec156/econincentives.htm (616 words)

	[No title] (Site not responding. Last check: 2007-10-20)
		Suppose that the costs given above private costs, that is the costs that the producer must pay, and that these don’t include any pollution costs.
		Because our theory of competitive equilibrium is based on the assumption that firms choose their quantities supplied to maximize profits, and because firm profits depend only on private costs and not on external costs, the competitive equilibrium outcome is not affected by the existence of external costs.
		The costs are once again those given at the beginning of the assignment.
	www.ku.edu /~jsic/econ-700A/Assignments9&10F01.doc (1394 words)

	Ronald H. Coase
		In Coase's work on the nature of the firm (1937), he argued that firms should be conceived as entities endogenous to the economic system and whose existence is justified only in the presence of transactions costs to production.
		These two theorems have found wide application throughout economics - and also law, sociology and political science (particularly of the Chicago variety) and launching the whole field of "New Institutional Economics" - thereby making Ronald Coase one of the leading "imperialists" on behalf of economics into other disciplines.
		It was on the strength of these theorems that R.H. Coase won the Nobel prize in 1991.
	cepa.newschool.edu /het/profiles/coase.htm (308 words)

	EU study of external costs of energy: What you pay with your flesh.
		In most countries where such capacity is installed, the external cost of wind is only approached by either nuclear or hydro energy.
		The external cost of biomass in Germany is 15 times the external cost of nuclear energy, possibly because of Germany's reliance on chemically intensive fertilization.
		The external cost of nuclear energy is the highest for the Netherlands of any country in the EU.
	www.democraticunderground.com /discuss/duboard.php?az=view_all&address=115x5609 (2759 words)

	Features
		Type 1 metric is comparable to the link-state metric; the cost is equal to the sum of the internal costs plus the external cost.
		Type 2 metric is much larger than the cost of any intra-AS path; the cost is equal to the external cost.
		Route leakage into OSPF—When another routing protocol adds a new route to the routing table, or when a static route is added to the routing table, OSPF can be informed through the redistribute commands.
	www.juniper.net /techpubs/software/erx/junose60/swconfig-routing-vol1/html/ospf-config4.html (1107 words)

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