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Brian Eggleston's message sent me to Andreas Papandreou's EXTERNALITY AND 
INSTITUTIONS (Clarendon, 1994).  He notes (p. 22) that Oskar Lange (1936) 
offered a "broadened scope for externality" in discussing "external 
economies with centrally administered economic systems."  Whether or not 
he used the term "externality" or "externalities" awaits further 
checking. Papandreou also mentions Sidgwick's (1883) discussion of timber 
companies  affecting "atmosphere through deforestation."  Mark Blaug's 
entry on Sidgwick (in GREAT ECONOMISTS BEFORE KEYNES, CUP, 1986) says 
that he (Sidgwick) brought a "recognition of externalities in production 
(the famous example of the lighthouse) as a source of 'market failure'."  
 But whether or not Henry used "externality" awaits someone with access 
to the text.   I stand by Francis Bator (1957) for the first published 
use of the term "externality." 
 
Dan Bromley 
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