positive externalities

Positive externalities occur when an action or decision by an individual or business benefits others who are not directly involved in that action. For example, when someone plants a garden, it beautifies the neighborhood and increases property values, benefiting neighbors and passersby. These benefits are unintended and not reflected in the market price. Positive externalities highlight how certain activities can create broader societal advantages, encouraging public goods and services that improve overall well-being, such as education and public health initiatives. Essentially, they demonstrate the ripple effects of individual actions on the community.