> If I drive a car, and it causes pollution where I live, then aren't I, as part of society, paying the "true" cost? No, because part of the cost is the fact t

> If I drive a car, and it causes pollution where I live, then aren't I, as part of society, paying the "true" cost? No, because part of the cost is the fact that pollution in that area affects everyone -- including non-drivers. You're paying part of the cost, yes, but not the whole thing. Imagine if there was some mechanism such that non-drivers inhaled as much pollution as there'd be if there were no cars*, and drivers inhaled as much pollution as is proportional to however much pollution they themselves create (this would vary not just based on a binary do/do not drive, but on how much you drive and how polluting your vehicle is). Then each person would be paying the true cost. A true cost has to be proportional to the damage done, such that changing behavior results in changing cost paid. * leaving aside the impracticality of zero non-electric cars for the moment