externality

noun

ex·​ter·​nal·​i·​ty ˌek-ˌstər-ˈna-lə-tē How to pronounce externality (audio)
plural externalities
1
: the quality or state of being external or externalized
2
: something that is external
3
: a secondary or unintended consequence
pollution and other externalities of manufacturing

Examples of externality in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
These examples signal a broader shift in how risk can be managed, and how ecosystems are beginning to be treated not as externalities, but as investable risk buffers. Felicia Jackson, Forbes.com, 12 Aug. 2025 Allowing voluntary data porting by consumers can lead to possible unraveling (i.e., customers are compelled to share data as non-disclosure will be perceived negatively by providers) and negative data externality for customers who don’t share data. Ron Shevlin, Forbes, 24 Nov. 2024 Furthermore, the sector is incredibly vulnerable to numerous externalities, including supply chain constraints, regulatory changes and a constantly evolving workforce. Forbes.com, 19 June 2025 While today's market may not fully price environmental externalities, forward-thinking policies and market pressures increasingly will. Aya Saed, Time, 17 June 2025 See All Example Sentences for externality

Word History

First Known Use

1673, in the meaning defined at sense 1

Time Traveler
The first known use of externality was in 1673

Browse Nearby Words

Cite this Entry

“Externality.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/externality. Accessed 19 Aug. 2025.

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!