Respuesta :
By taxing commodities when their production results in spillover costs, the government can consumption to the reduction of negative externalities. This taxes actually raises the cost of manufacturing these goods benefits.
Governments have two options: consumption utilize regulation (such as making a behavior illegal) or rely on market forces. When creating or using a good results in a benefit for a third party, that advantage is known as an external benefit. Positive externalities, or external benefits, imply that social benefit will always outweigh individual advantage. One method of mitigating externalities is through taxes. Governments can levy a tax on the items responsible for some externalities to assist lessen their adverse impacts, such as pollution. Market failure is typically a result of negative externalities. When that occurs, one of three types of responses are available from the government: of laws, levies, and tradeable licenses for pollution. By enacting new rules that directly regulate undesirable behavior, regulation enables the government to lower externalities. Imposing taxes is one way to address harmful externalities and influence people's behavior. To lessen the negative consequences of some externalities, such as air pollution, smoking, and alcohol consumption, taxes may be levied. By taxing items that have negative externalities and subsidizing goods that have positive externalities, the government can internalize the externality and solve the issue. Setting forth property rights. The impact of economic activity on unrelated parties can be restricted by a rigorous definition of property rights. Taxes Taxes can be levied by the government on products or services that cause externalities.
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