Conceptual challenges for internalising externalities

Brandão Miguel, Bo Pedersen Weidema

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Abstract

We analyse a number of different externalities to identify conceptual challenges for the practical implementation of their internalisation. Three issues were identified: i) The balance between compensation and technology change and the respective effects on the nominal and real GDP;
ii) The relevance and efficiency of different instruments for internalisation and compensation; and iii) Implementing internalisation over large geographical and temporal distances. We find taxation to be a more relevant and efficient tool for internalisation than insurance and litigation. With increasing geographical and especially temporal distance between the benefitting actor and the victim of the external cost, the involvement of a non-governmental intermediate actor becomes increasingly necessary to provide the short-term capital required to ensure a successful implementation.
Original languageEnglish
Title of host publicationProceedings of the 6th International Conference on Life Cycle Management
PublisherChalmers tekniska högskola
Publication date2013
Pages205-208
ISBN (Print)978-91-980973-5-1
Publication statusPublished - 2013
EventThe 6th International Conference on Life Cycle Management - Gothenburg, Sweden
Duration: 25 Aug 201328 Aug 2013

Conference

ConferenceThe 6th International Conference on Life Cycle Management
Country/TerritorySweden
CityGothenburg
Period25/08/201328/08/2013

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