emmaperry42 emmaperry42
  • 25-03-2020
  • Social Studies
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How does the government intervene to deal with the existence of negative externalities

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carmen12368
carmen12368 carmen12368
  • 25-03-2020

Answer:

Government can play a role in reducing negative externalities by taxing goods when their production generates spillover costs. This taxation effectively increases the cost of producing such goods. ... The use of such a tax is called internalizing the externality.

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