Daily externalities

Externalities are a concept from economics that affects us all, and that deserves more attention

In 1989, a member of the Ramblers noticed that a barn was being built across an age-old footpath across an East-Sussex estate. England is criss-crossed by numerous rights of way, many of which are hundreds of years old, with some going back to Neolithic times. The Ramblers is an association with a mission to “protect the ability of people to enjoy the sense of freedom and benefits that come from being outdoors on foot”. When provoked, it can be somewhat militant. This particular obstruction set in motion a sequence of events that would take nearly fourteen years to come to a conclusion, and lead to further obstructions (comprising padlocked gates, barbed wire and refrigeration containers), court cases, and fines and costs totalling over £100,000. In the end all obstructions were cleared, and walkers could once again stroll across the estate, unimpeded. The externality was resolved.

In economics and beyond

This is what an externality looks like (photo: Kate Ashbrook)

It may be a somewhat eccentric example, but an externality is precisely what this was. In economics, externalities…