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Marginal Social Cost
The total cost to society of producing one additional unit of a good or service, including both the private costs and any external costs.
Pigouvian Taxes
Taxes designed to reduce external costs.
External Costs
costs inflicted upon a third party when goods and services are produced and consumed.
Tradable Emissions Permits
Licenses to emit limited quantities of pollutants that can be bought and sold by polluters.
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