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This paper discusses a number of issues that will become increasingly important nowthat the concept of marginal external cost pricing becomes more likely to be implementedas a policy strategy in transport in reality. The first part of the paper deals with thelong-run efficiency of marginal...
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During the 1950s and 1960s, many economists were convinced that externalities were a cause of "market failures … economist, James Buchanan, who systematically tried to show that externalities should not be viewed as a problem for market … market mechanisms and private arrangements in presence of externalities. By adopting an historical perspective, we are able …
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, or Pigouvian taxes effectively place the weight of externalities on the relevant decision makers. Yet, the available …
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