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