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How would price discovery operate on externalities? Who decides what's an externality? It seems like you're suggesting centralized planning under a different na

• WalterBright 6y ago
  The government decides what is an externality and determines the tax rate. Two things governments are good at: taxing, and starting wars. Why not take advantage of the first? It even has the advantage of being a revenue source for the government, rather than a revenue sink. The government has to tax something, why not externalities? Around here, the government decided to tax plastic shopping bags. Geez, just put a tax on it instead. Raise the tax until plastic shopping bags become scarce enough. Then if someone really wants a plastic shopping bag to use, say, to clean up after their dog, they can if they're willing to pay. Much better than being charged with a crime.