ENVIRONMENTAL SUSTAINABILITY - INTERNALIZATION OF ENVIRONMENTAL EXTERNALITIES

Economic assessment of environmental damage and estimate the negative externalities are of particular importance aimed assigning monetary values to use. In economic terms, using produce cost environment where there is conflict between uses, and / or quality of a good is affected beyond measure considered tolerable. This means that the environmental good in question is a rare good economic sense. However, in addition to the direct costs of use, there are also indirect costs - negative environmental externalities that are highlighted in particular the phenomenon of pollution, when appearing as economic damages are not compensated financially. Monetization externalities should be performed when there are external benefits or costs, and they are not included in the financial analysis, or can be highlighted by using conversion factors.