What are external costs in energy use, and how might they affect a local community in a case study?

What are external costs in energy use, and how might they affect a local community in a case study?

• A. External costs are environmental and health costs not reflected in market prices; they can reduce quality of life and raise public health costs for the community.
• B. External costs are taxes paid to the government.
• C. External costs are costs paid by producers only.
• D. External costs are benefits received by others.

Answer: (A)