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What Is Meant by the Term "Internalizing an Externality"? How

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Essay

What is meant by the term "internalizing an externality"? How does a Pigovian tax or subsidy internalize an externality?


Definitions:

Business Messages

Communication that occurs within or from a business, encompassing a variety of formats and purposes, from emails to reports.

Free Writing

An exploratory technique in which you write whatever comes to mind, without stopping to make any corrections, for a set period of time.

Ethical Information

Data or knowledge that is handled in a manner that is morally right and fair, respecting privacy and confidentiality.

Accuracy

The quality or state of being correct or precise.

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