A few comments mention that the policy is about internalising the cost of externalities.
In this concrete case, I wonder how do you price it correctly absent a market?
Generally, I wonder how far you can extend the concept of internalising externalities without severely limiting individual liberties.
E.g. health care (in countries with a public health care system). We already try to price in the social costs (burden on public health insurance) of smoking and drinking with taxes and other limitations.
How about other activities, like biking without helmets (legal in some countries), extreme sports or consumption of coffee, meat etc?
Should we tax and limit activities that are "negative externalities" and provide tax benefits for "positive externalities"?
In this concrete case, I wonder how do you price it correctly absent a market?
Generally, I wonder how far you can extend the concept of internalising externalities without severely limiting individual liberties.
E.g. health care (in countries with a public health care system). We already try to price in the social costs (burden on public health insurance) of smoking and drinking with taxes and other limitations. How about other activities, like biking without helmets (legal in some countries), extreme sports or consumption of coffee, meat etc? Should we tax and limit activities that are "negative externalities" and provide tax benefits for "positive externalities"?