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Vaniver comments on How should negative externalities be handled? (Warning: politics) - Less Wrong Discussion

-5 Post author: nigerweiss 08 May 2013 09:40PM

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Comment author: Vaniver 09 May 2013 05:48:52AM 4 points [-]

This is primarily when the efficiency improvements make a previously niche technology viable over a much broader range of cases.

This isn't just the Jevons paradox, though that does amplify this. It's also the claim that while a tax and subsidy are equivalent in the short-run, in the long-run the tax decreases the profitability of the polluting industry while a subsidy increases the profitability of the polluting industry, which may lead to increased pollution.

Comment author: Luke_A_Somers 09 May 2013 02:51:32PM 0 points [-]

The subsidy itself will also make the technology viable over a broader range of cases, yes... should have mentioned that part. Tried to get too clever.