Economists generally prefer greater effort made to force internalization of externalities through taxes rather than using alternative approaches, such as establishing pollution standards.

Question

Quizplus · Accepted Answer

Economists generally prefer taxes to force internalization of externalities because they provide a market-based solution that encourages polluters to reduce their emissions. Pollution standards, on the other hand, may not be as effective and can be more costly to enforce.

Economists Generally Prefer Greater Effort Made to Force Internalization of Externalities