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how can we solve the externalities that are related to common resources and public goods?

Posted on December 13, 2022December 13, 2022 by Pulse

how can we solve the externalities that are related to common resources and public goods?

Governments may choose to remove or reduce negative externalities through taxation and regulation, so heavy pollutants, for example, may be subject to taxation and subject to greater scrutiny. On the other hand, those who create positive externalities may be rewarded with subsidies.

how can we solve the externalities that are related to common resources and public goods?

It can include those from both the public and private sectors. Taxes are one solution to overcome externalities. To help reduce the negative effects of some external factors such as pollution, governments can levy a tax on goods that cause externalities.

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