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The idea of externality was first evolved by financial expert Arthur Pigou in the 1920s.[2] The prototypical illustration of a negative externality is ecological
The idea of externality was first evolved by financial expert Arthur Pigou in the 1920s.[2] The prototypical illustration of a negative externality is ecological contamination. Pigou contended that a duty, equivalent to the minor harm or peripheral outside cost, (later called a "Pigouvian charge") on bad externalities could be utilized to diminish their occurrence to a productive level. [2] Subsequent
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