This can create substantial negative externalities for governments, employees, suppliers and other stakeholders.

Finally, subsidies may also create positive externalities, such as decreased soil erosion from increased plant growth.

When size creates externalities, do what you would do with any negative externality: tax it.

Nuclear powered stations also arguably create negative externalities, of course.

In addition, if the industry concerned creates externalities, these may be dealt with more directly if it is state-owned.

It was beneficial to stimulate the construction of these roads because they also happened to create positive externalities.

Production of public goods are a textbook example of production that create positive externalities.

In an equilibrium state we see that markets creating positive externalities of production will under produce that good.

A firm may report relatively large monetary profits, but by creating negative externalities their social profit could be relatively small.

The rationale for public trade promotion measures is based on the observation of market failures and the idea of creating positive externalities.