<p>In theory, a nation could build the full economic cost of externalities, be they positive or negative, into a wide range of transactions. Are there any comprehensive resources on the effects this would have, rooted in or citing the primary literature?</p>

CC BY-SA 4.0
2020-08-07T20:07:52.627Z
Feel free to edit this question to meet any standards economics.se has for reference requests, as I couldn't find a policy analogous to [this](https://physics.meta.stackexchange.com/questions/4697/are-resource-recommendations-allowed).
J.G.
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2020-08-08T06:44:13.223Z
@KennyLJ The economic costs of externalities are often empirically computable, and can be incorporated via taxes if positive and subsidies if negative.
J.G.
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2020-08-08T11:27:09.047Z
In light of the close vote seeking details/clarity, I'll clarify I'm interested in estimation of the first and second dividends from Pigovian taxes and subsidies that internalize non-pecuniary externalities. I welcome any identification of what else I need to say.
J.G.
CC BY-SA 4.0
2020-08-08T19:11:53.527Z
@J.G. there is a broad literature on externalities both theoretical and empirical but from your post I have no idea what you are actually looking for. In any econ 101 textbook you will find that piguvian taxes have the effect of equalizing social and private cost of an activity. Is that what you mean by 'effect' here?
1muflon1
CC BY-SA 4.0
2020-08-08T19:37:45.313Z
@1muflon1 I'm looking more for a quantification of how supply and demand would change across the economy, and (where applicable) what knock-on effects this would have. For example, how much healthier would our diets be, with what effects on healthcare expenditure, if we applied this to food? This is beyond the scope of a "therefore these two costs would be equal" theorem proved on one page of an econ 101 textbook.
J.G.
CC BY-SA 4.0
2020-08-08T19:41:56.070Z
@J.G. in that case your question is too broad and when for example we are talking about health not even strictly speaking within confines of economics but interdisciplinary. In that case I recommend narrowing down question to single area. For example, what is the effect of pigouvian taxeses on fast-food on healthcare outcomes  or what is the effect on supply of fast food restaurants. Otherwise the question would be so broad it would require several pages just to provide overview of literature of literature review - this site is not really build for that
1muflon1
<reference-request><externalities>
Resources on effects of transactions building in externalities
J.G.
# Resources on effects of transactions building in externalities

(Asked by: username_0 on 2020-08-07)

In theory, a nation could build the full economic cost of externalities, be they positive or negative, into a wide range of transactions. Are there any comprehensive resources on the effects this would have, rooted in or citing the primary literature?

**Tags:** reference-request, externalities

> **Comments:**
> **username_0**: Feel free to edit this question to meet any standards economics.se has for reference requests, as I couldn't find a policy analogous to [this](https://physics.meta.stackexchange.com/questions/4697/are-resource-recommendations-allowed).  
> **username_0**: @KennyLJ The economic costs of externalities are often empirically computable, and can be incorporated via taxes if positive and subsidies if negative.  
> **username_0**: In light of the close vote seeking details/clarity, I'll clarify I'm interested in estimation of the first and second dividends from Pigovian taxes and subsidies that internalize non-pecuniary externalities. I welcome any identification of what else I need to say.  
> **username_1**: @username_0 there is a broad literature on externalities both theoretical and empirical but from your post I have no idea what you are actually looking for. In any econ 101 textbook you will find that piguvian taxes have the effect of equalizing social and private cost of an activity. Is that what you mean by 'effect' here?  
> **username_0**: @username_1 I'm looking more for a quantification of how supply and demand would change across the economy, and (where applicable) what knock-on effects this would have. For example, how much healthier would our diets be, with what effects on healthcare expenditure, if we applied this to food? This is beyond the scope of a "therefore these two costs would be equal" theorem proved on one page of an econ 101 textbook.  
> **username_1**: @username_0 in that case your question is too broad and when for example we are talking about health not even strictly speaking within confines of economics but interdisciplinary. In that case I recommend narrowing down question to single area. For example, what is the effect of pigouvian taxeses on fast-food on healthcare outcomes  or what is the effect on supply of fast food restaurants. Otherwise the question would be so broad it would require several pages just to provide overview of literature of literature review - this site is not really build for that  

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## 0 answers

