Purpose
This is a written assignment in which you must conduct exploratory research on negative externalities and evaluate different policies/methods the government uses to internalize the negative externality. For example, students can evaluate the relative costs of a command and control vs a market-based solution to reduce greenhouse gas emissions to determine how to reduce emissions with the least harm to an economy.
Instructions
Please make sure that:
You clearly identify the market (product or activity) that causes negative externalities, which means the negative externalities must be also well-defined. These could be shown with good statistics and proper in-text citations (and references.)
You are to write a summary of the command and control vs market-based solution policy implemented in the market of your choice. Again, if you use any direct quotes or statistics from the sources, you must cite the sources properly.
Evaluate and determine the policies that would be the least harmful to an economy. You must support your arguments with research/studies/statistics, etc.