| 21. | In the externalities paradigm, the key concept is called pecuniary externality.
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| 22. | In the externalities paradigm, the key concept is called pecuniary externality.
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| 23. | Moreover, buying locally decreases emissions through reduced transportation externalities.
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| 24. | Externalities show that players benefits depend heavily on other players commitment decisions.
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| 25. | In other words, the tax only considers the amount of externality produced.
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| 26. | Basic economic theory recognizes the existence of externalities and their potential negative effects.
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| 27. | It incorporates all negative and positive externalities, of both production and consumption.
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| 28. | Pigouvian taxation is revealed as not the only way to internalize an externality.
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| 29. | By applying the Coase Theorem two possible solutions arise for internalizing this externality.
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| 30. | Classic examples of externalities include pollution or over fishing.
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