The Use of Standards and Prices for Protection of the Environment

In the Pigouvian tradition, economists have frequently proposed the adoption of a system of unit taxes (or subsidies) to control externalities, where the tax on a particular activity is equal to the marginal social damage it generates. In practice, however, such an approach has rarely proved feasible because of our inability to measure marginal social damage. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.