The process of providing incentives so that externalities are taken into account internally by firms or by consumers is called

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Internalizing the externalities is the process of providing incentives to firms or consumers so that they take into account the external costs or benefits of their actions. This can be done through mechanisms such as taxes, subsidies, or tradable permits. Socializing externalities would involve making society as a whole responsible for the costs and benefits of externalities, while privatizing externalities would involve transferring ownership or control of them to private individuals or entities. Contingent valuation refers to a method of estimating the value of public goods or externalities by asking people how much they would be willing to pay or accept for them. Externalizing externalities would mean ignoring or transferring the costs or benefits of externalities to third parties rather than internalizing them.

The Process of Providing Incentives So That Externalities Are Taken