Positive externalities occur when an action or decision by an individual or business benefits others who are not directly involved in that action. For example, when a company invests in clean energy, it not only reduces its own carbon footprint but also contributes to a healthier environment for the entire community. This can lead to improved public health and increased property values in the area. Another example is education. When individuals pursue higher education, they often gain skills that benefit society as a whole. Educated individuals can contribute to economic growth, innovation, and civic engagement, creating a more informed and productive community. This ripple effect illustrates how positive externalities enhance overall societal well-being.