Erosion is an example of an external cost of deforestation because it is a harmful "hidden cost" not included in the market prices of goods and services.

Question

Erosion is an example of an external cost of deforestation because it is a harmful "hidden cost" not included in the market prices of goods and services. ​

Quizplus · Accepted Answer

Erosion, as a result of deforestation, is an external cost because it is a negative consequence not accounted for in the market price of goods and services, such as timber, leading to environmental degradation and additional costs for society.

Erosion Is an Example of an External Cost of Deforestation