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They regulate firms and make such practices illegal.

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Q: How do governments correct for the unfairness of negative externalities?
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Related questions

What should governments do to internalize externalities?

Please give some examples of negative externalities and possible ways to correct them


Who was the first economist who first proposed that governments use taxes and subsidies to correct for externalities?

A. C. Pigou


How do governments correct for negative externalize?

Governments have the ability to compensate and decrease externalities such as marginal social and environmental costs by regulatory, taxation, and punitive fine regimes. Thus, governments can use revenue and legal mechanisms to increase the cost of such externality causes and by doing do decrease their incidence.


What do you understand by the term externalities and how can it be corrected in Nigeria economy?

Externalities is the positive (or negative) effect to the society due to consumption (production) of a good by an individual.The answer assumes that the externality in which Nigeria is facing is a negative externality. Ways to correct negative externalities are:Taxation: By increasing tax, we discourage production of such good, reducing negative externalitiesNegative advertising: similarily, this method aims to reduce demand for the said goodTradable permit: The best example for this is the "Cap 'n' Trade" scheme used by the United States government. This aims to reduce the amount of negative externalities year by year.Banning of that good: One can ban the production of that good and make it illegal (drug.) However, this is likely to create a parallel market (black market)


Rachel states that -5.5 is an integer because it is negative. Is she correct Why or why not?

Rachel states that -5.5 is an integer because it is negative. Is she correct Why or why not?


Does a negative number minus a positive equal a negative?

That is correct. If you subtract a positive number from a negative number, your result is negative.


Does a negative minus a number equal a positive?

That is correct. If you subtract a positive number from a negative number, your result is negative.


What is the correct negative prefix of relevance?

The correct negative prefix of "relevance" is "ir-".


What is negative 2 minus negative 2?

negative 4 No, the answer is not -4. Subtracting a negative is like adding a positive So... the correct answer is 0


Which quote is correct - negative ghost rider or negative ghost writer?

The correct quote is "negative ghost rider." It is a phrase popularized in the movie "Top Gun" to indicate a negative response or denial.


Why do a positive and a negative make a negative?

Its because that's what they came up with. Its just mathematically correct.


What is 5 less than negative 4 equal... negative 9?

Correct!Good work.