Finally, subsidies may also create positive externalities, such as decreased soil erosion from increased plant growth.
Would a blackboard chart of positive externalities involve weight loss?
There is a positive externality when the government provides society at large with public goods and services such as defense and disease control.
These interactions generate both positive and negative externalities between others' actions.
It was beneficial to stimulate the construction of these roads because they also happened to create positive externalities.
On the other hand, a positive externality would increase the utility of third parties at no cost to them.
The graph below shows the effects of a positive or beneficial externality.
The production of public goods results in positive externalities which are not remunerated.
If there is a positive externality, then one will have higher social benefits than private benefits.
In this sense, children are positive externality which is under-invested according to traditional analysis.