To internalize the consumption externality of pesticide use, a product charge can be implemented as a unit tax.

Question

Quizplus · Accepted Answer

By implementing a product charge as a unit tax on pesticides, the external cost of their consumption can be internalized. This means that the cost of their negative effects on the environment, human health, and other aspects of society is reflected in the price that consumers pay for them. By paying a higher price for pesticides, consumers are incentivized to reduce their use or switch to less harmful alternatives, which can ultimately benefit both the environment and human well-being.

To Internalize the Consumption Externality of Pesticide Use, a Product