[derg]

we all know that rarely if ever happens. market don't care.

[throwaway894345]

That's what "pricing in the negative externality" means: making the market care.

[derg]

and who exactly is doing the pricing here then?

[throwaway894345]

government, for example, by taxing the externality

[derg]

so it's not the market naturally pricing it in then is it?

[throwaway894345]

No, and it couldn't be, which the point that you seem to be circling. Markets aren't self-governing--they don't set the rules that they abide by (including which externalities are priced in and which aren't)--that's a function of government.

[derg]

No, you're not reading:

> Then the negative externalities should be properly priced in.

is what I was replying to, saying the market isn't going to naturally do this because capital doesn't actually care about negative externalities until forced to.

That's literally all I said.