[asdf123wtf]

https://www.investopedia.com/terms/e/externality.asp

Some basic economics 101 reading can set you straight here.

It's a legitimate function of government to craft regulation when there are negative externalities distorting markets.

Sometimes government regulation makes markets more free. Crazy, I know, but please let it sink in.

If it helps: you can think of producers that rely on negative externalities as freeloading evil socialists who redistribute other people's wealth (without consent) to themselves.

[phpisthebest]

That is one way to look at it, I disagree with this however even taking at face value you need to calculate the actual cost of the externality and then recover that

here they are saying "Well we need the price set to X to be competitive" that has nothing to do with calculating the cost of the externality, which may be lower (or higher) the taxation needed to bring this product to be price comparable