Geothermal Systems Engineering
Externalities are costs or benefits that affect a third party who did not choose to incur those costs or benefits. They can be positive or negative and often occur in the context of economic activities where the full costs or benefits of production and consumption are not reflected in market prices. This concept is crucial when considering renewable energy incentives, as these incentives can help address market failures caused by externalities by promoting cleaner technologies and reducing harmful environmental impacts.
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