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The positive value is from goods shipped. It's not from goods shipped with gasoline. That's why you tax the gasoline, and not the shipping. Shipping companies w
by energy123 2y ago
The positive value is from goods shipped. It's not from goods shipped with gasoline. That's why you tax the gasoline, and not the shipping. Shipping companies will move to EV trucks or synthetic gasoline or hydrogen or carbon credits or whatever and goods will still be shipped, just without the gasoline. At least in the steady state after the market optimizes.
- s1artibartfast 2y ago>The positive value is from goods shipped. It's not from goods shipped with gasoline. When goods & people are shipped with gasoline, it is producing that external value. When I drive to the super market to buy groceries, the grocery store receives 2nd order value (aka externality). The fact that alternative modes of transportation exist does not negate the fact that the positive externality exists. Externalities are not defined using comparative analysis. Lets say you move to EVs or whatever, those too will have externalities. The composition of those externalities may be different than gasoline, as factors are internalized and excluded to the costs paid.