| The externalities | The measurement of the externalities is essential in order to set up a consistent cost-benefit analysis (CBA) |
| The existence of high and diffused externalities such as those connected to environmental impacts is an obstacle for market prices in reaching a fair equilibrium between offer and demand | |
| Public policies should target external costs reductions through environmental cost effective regulation and a fair charging policy based on the “polluter pays” principle | |
| It’s much more better to estimate external costs rather than to ignore their existence |
“The external costs of a certain activity are the costs that are not paid by the responsible of the activity and that fall back on society”
© 2006 - Andrea Molocchi