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Handbook >> Externalities >> Dealing with Externalities >>

Public Sector Solutions

Many economists agree that purely private sector methods for dealing with externalities are unlikely to work. Here we will explore a few potential options that governments have in dealing with externalities, or forcing the internalization of externalities. These options include direct regulation and incentive policies.

For more on how these regulatory policies are used to address externalities in the environment, see
Pollution Control Methods.

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