Subsidy
If private property rights exist and
transaction costs are low, the market
will arrange an agreeable solution as to
how the costs of negative externalities
will be paid for.
A government payment th
supports a business or
market
firms can buy/sell/trade
permits to emit certain
amounts of pollutants (helps
reduce negative externalities)
A federal tax paid by
businesses and investors
when they sell stocks or rea
estate for a profit.
