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Absorbing the negative externalities of a process is the same as subsidizing it. The subsidy value here is bounded above by the net present value of the negativ
by scatters 5y ago
Absorbing the negative externalities of a process is the same as subsidizing it. The subsidy value here is bounded above by the net present value of the negative externalities in question.
- wang_li 5y agoWhat are the externalities of extracting fossil fuels? Or are you attributing the consumption of fossil fuels to the extraction companies? How many degrees removed does one continue to be responsible?
- scatters 5y agoThe externality is in removing the carbon from the geosphere and introducing it into the biosphere, since it'll end up in the atmosphere eventually. So yes, the responsibility for the externality is attributable to the extracting companies.