Examples

We have proposed a number of strategies to internalize costs or benefits of activities through taxes or subsidies.

AreaExternalized Cost or BenefitProposed ActionSee Also
Carbon DioxideCO2 emissions do harm to the environment and future generationsCarbon taxEnergy Pricing
Learning By DoingAs a technology is deployed, costs fall, benefiting all producersSubsidize nascent technologyClean Energy Deployment
Research and DevelopmentR&D benefits all producers and societySubsidize or public involvement in R&DResearch and Development
DietEnvironmental costs of meat productionMeat taxImpacts of Diets
Antibiotic ResistanceUse of antibiotics, especially in animal agriculture, creates disease riskTax on antibiotics for livestocksRisks in the Agricultural System
WaterEconomic and environmental costs of providing water often not pricedWater marketsWater Usage
WildfiresCost of firefighting is external to development in wildland-urban-interfaceIncorporate firefighting costs into development feesWildfire Management
MiningEnvironmental costs of mining and clean-up are not reflected in mining costsMining taxEnvironmental Impacts of Mining
Ecosystem ServicesValue of nature is not reflected in marketsEcosystem service tax for developmentEnvironmental Valuation
InfrastructureCost of infrastructure is not taken into account well in new developmentDevelopment fees should incorporate infrastructure and service costCosts from Sprawl
Traffic CongestionTaking up road space imposes unpriced costs on other motoristsCongestion pricingLatent and Induced Demand
RecyclingUnrecycled material is a lost economic opportunityTax on landfillingLandfill Taxation
Orbital CongestionSatellites add an external cost in the form of risk of collisionOrbital Use Fee
Orbital Debris