Evaluation of Social Externalities in Indian Coal Mining Industry - A Concept

Abstract

Concept of externality is century old. The action of one consumer or a firm should not affect the well-being of another consumer or a firm with whom there is no direct business relationship. Nevertheless, in reality, our economic activities control natural systems directly or indirectly, and definitely has some externalities. This arises when an individual or a firm takes an action but does not take account of the external cost or benefits that are being generated because of lack of any incentive. In this paper, an attempt has been made to identify the social externalities of coal mining in India.