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So we are measuring the negative externalities against the market calculation, rather than all externalities against all externalities.
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When we should be comparing all externalities with market value added.
FORBES: Pollution Costs More Than What is Produced to Make the Pollution
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This is like the problem of externalities, where market actors do not bear the costs of their actions or choices.
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We are comparing market value added with negative externalities.
FORBES: Pollution Costs More Than What is Produced to Make the Pollution
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That is held to result when the market suffers from inadequate or inaccurate information delivery, inadequate or insufficient competition, principal-agent problems (where agents fail to represent the interests of their principals), and externalities (where market actors fail to bear the costs of their actions or choices), among other problems.
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Outside of natural cycles in the economy, there are many externalities that can interfere with market stability, for example war, the deficit, international financial distress, etc.
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However, sewage treatment has many positive externalities as well, things not measured in market prices.
FORBES: Pollution Costs More Than What is Produced to Make the Pollution