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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (73361)	6/23/2008 5:25:45 PM
From: spiral3	Respond to of 542201

No I didn't. ok I went back and reread your post, now understand what you were saying, read it differently the first time round. Imposing a cost to internalize the externality and than letting people figure out their own way of dealing with it, tends to be more efficient than command and control from the center. In a lot of cases yes. In reality what one finds when looking at the methods used to impose external costs is often a mixture of the two. Best policy might not always be the most economically efficient, eg subsidies or incentives might be needed to kick start things initially. How to impose external costs will depend on the degree, nature and phase of economic development in any country, the urgency of meeting targets etc.