Negative externalities of production

Negative externalities of production are costs borne by a third-party that are not accounted for by the producer. These externalities can have a major impact on the environment and society. Examples of negative externalities of production include air, water, and land pollution, noise pollution, habitat destruction, as well as public health impacts from exposure to hazardous materials. In some cases, a producer may take actions to lessen the impacts of their production activities, but in other cases, these effects will remain even if the producer makes no effort to mitigate the impacts.