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ECONOMIC CONCEPTUALIZATION OF NEGATIVE ENVIRONMENTAL EXTERNALITIES

Gabriela Piciu and Iuliana Militaru
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Iuliana Militaru: Romanian American University

Romanian Economic Business Review, 2013, vol. 8, issue 3.1, 123-130

Abstract: In response to various pressures of society, economic agents polluting behaviors began to report externally on its environmental policy and performance. The importance of such an external report depends on the degree of change required in management culture and systems, in how new environmental protection measures influence management decisions. "Internalization of externalities" implies a reassessment of how to identify and measure the relevant costs of processes and products (such as a "total cost assessment") and to design mechanisms for stimulating innovation. Following these changes, management decisions and behavior could be reoriented, aimed at the establishment of sustainable development, for example by applying a viable industrial ecology.

Keywords: negative externalities; external costs; internalization of externalities (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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