4 ms·
> Perhaps because this is just one of the external costs, and these costs are absorbed through taxes (for instance, road wear is higher for heavier vehicles, so
by lliamander 4y ago
> Perhaps because this is just one of the external costs, and these costs are absorbed through taxes (for instance, road wear is higher for heavier vehicles, so lighter car effectively pay for the SUVs and trucks)
The externality we are specifically talking about is the safety risk to others that comes from having a larger vehicle. Other externalities can be solved different ways, but doe this specific one this seems like precisely the scenario addressed by liability insurance.