great exposition about taxes on externalities often being sub-optimal. part of the problem with pigouvian taxes as the solution to externalities is that taxes a

great exposition about taxes on externalities often being sub-optimal. part of the problem with pigouvian taxes as the solution to externalities is that taxes are often viewed with skepticism because of the association with either a big black hole of waste or one of greedy corruption, so you get all kinds of resistance (not to mention the primary resistance of the "greedy wanting to greed"). but the general idea of pricing in externalities is a neceesary, and possibly an ingenious, way to keep our greedy selves in check for the good of the whole. it's only fair that individuals and small groups of people shouldn't exploit collective resources for only themselves. benefits shouldn't be privatized while costs are socialized. they should go together (private benefit with private cost, public benefit with public cost). more to the point, "making sure all costs are paid for" by the prevailing party is much more palatable over the vagueness of taxation. external costs should be assessed and charged appropriately and the proceeds be used as much as possible to prevent or restore the resources used and/or the damages caused. the government will need to be involved at a regulatory level, but taxation doesn't seem to be it's most successful intervention option.