[aisengard]

We price in externalities all the time. A lot of the time it's priced in as the cost of complying with government regulation, like food safety and labeling. Other times it's priced in the other direction, like subsidies for green energy or particular crops (corn/ethanol). We just don't necessarily price them appropriately, or in a way that some people may think is accurate, but we certainly don't ignore the concept of externalities.

[bumby]

Absolutely. I wasn’t making case that we are always ignoring them. But I think there are some subset of cases where we don’t price them in proportionally to consumption. One example apropos to this thread is pricing in atmospheric carbon (or the externalities of extracting/protecting those resources). Based on your reply, I’m assuming you think regulation is a suitable way pricing in externalities?