He's not saying all externalities should be compensated. He is explaining public goods. You are familiar with the practice of paying for an army with taxes, ri

He's not saying all externalities should be compensated. He is explaining public goods. You are familiar with the practice of paying for an army with taxes, right? Then by analogy, he's saying that more and more things are moving into some weird place where they're more like public goods than what they replaced used to be. I don't see a call for treating them as public good in the article, though.