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DanielLC comments on How should negative externalities be handled? (Warning: politics) - Less Wrong Discussion
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In any particular area, the cost will be approximately linear. If all you're looking at is the emissions in one state caused by one group of things (like power plants) over the course of one year, then it's approximately linear. Also, depending on how accurately you can guess at what the market equilibrium will be, you can narrow it down further so the linear approximation is still more accurate.