Discuss externalities and their manifestations? What are the traditional approaches to solving the problem of externalities

Externality, also known as spillover effect, external influence, externality or external effect, external economy, refers to a situation in which the actions and decisions of one person or a group of people damage or benefit another person or a group of people. Economic externalities are the non-marketable impacts on others and society caused by the economic activities of economic agents (including manufacturers or individuals). That is, members of society (including organizations and individuals) engaged in economic activities and their costs and consequences are not fully borne by the actor. Divided into positive externality (positive externality) and negative externality (negative externality). Positive externality is an economic behavior of individual activities to benefit others or society, and the beneficiaries do not have to spend the cost, negative externality is an economic behavior of individual activities to the detriment of others or society, but the person who caused the negative externality did not bear the cost.

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