行走边缘

Negative externalities lead market to produce a large quantity than is socially desirable.positive externalities lend markets to produce a smaller quantity than is socially desirable.to remedy the problem,the government can internalize the externality by taxing goods that have negative externalities and subsiding goods that have positive externalities./the regulation would dictate a level of pollution,whereas the tax would give factory owners an economic incentive to reduce pollution.tradable pollution permit may be a better way.