If it costs relatively little to measure the external damage of a negative externality and it can be determined who is responsible for the externality,there are no other barriers to corrective taxation.

Question

Quizplus · Accepted Answer

Even if the cost of measuring the external damage is low and the responsible party can be identified, there may still be other barriers to implementing corrective taxation, such as political resistance, administrative challenges, and potential negative impacts on economic competitiveness.

If It Costs Relatively Little to Measure the External Damage