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Taxes imposed on polluting firms,for internalizing the externalities created by them,may not always lead to an efficient solution because:
Apparent Authority
The perception by a third party that an agent has the authority to act on behalf of a principal, even if such authority has not been explicitly or implicitly granted.
Principal Liable
Refers to the legal responsibility of the principal party in a relationship (such as an employer) for certain actions of their agents or employees under the doctrine of vicarious liability.
Apparent Authority
The impression given to third parties that an agent is authorized to act on behalf of a principal, even if such authority has not been formally granted.
Proper Notification
The act of informing someone through legally accepted or specified means.
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