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Internalities
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About Internalities
Internalities in economics describe costs a person imposes on their own future self through present actions, like poor health from consuming sugared soda. Unlike externalities, which affect third parties such as pollution impacting neighbors, internalities reflect a gap between current choices and long-term well-being. Researchers like Hunt Allcott and Cass Sunstein have used the concept to analyze policies such as soda taxes and energy efficiency standards.
The term also appears in art and architecture. La Biennale di Venezia used Internalities for its 2025 Spanish Pavilion to frame sustainable building practices that internalize environmental costs locally. The Galician Centre for Contemporary Art later hosted an exhibition with the same name, exploring materials, emissions, and labor through sculptures and installations
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