3 ms·
The how is difficult -- studies like this are part. "Do you really want to?" is a clear yes. It's called a Pigovian tax, and it's the most unambiguously "correc
by lkbm 6y ago
The how is difficult -- studies like this are part. "Do you really want to?" is a clear yes. It's called a Pigovian tax, and it's the most unambiguously "correct" way to tax things: you tax things in accordance to their harm to third-parties (and subsidize things in accordance to their benefits to third-parties).
Markets only work if we internalize the externalities, which can most efficiently be done through taxation. Pollution is one of the standard examples of an externality.