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It's funny, because I could, with zero incredulity, say that information disclosure allows consumers to accurately price externalities and market-based solution
by kelseyfrog 3y ago
It's funny, because I could, with zero incredulity, say that information disclosure allows consumers to accurately price externalities and market-based solutions are the most efficient ways to arrive at realistic price equilibria.
- scotty79 3y agoConsumers can't price externalities even given full information becuse they are not educated and not rational.
- anonuser123456 3y agoThere is a very large body of evidence that demonstrates consumers are unwilling to pay higher prices for environmental benefits. The entire premise of Pigouvian taxes is that they force consumers to pay the external cost, not let them optionally avoid them. This leads to substitution effects lowering consumption of the pollutant. All market participants must be subject to that price or you introduce arbitrage opportunity. Information alone is not enough.