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Conclusions received as a result of the analysis for a policy with necessity are false.
However, the approach which distracts attention from the basic questions, is interfaced with
Dangers, also there are no doubts, what exactly in it the reason of some errors
The dominating doctrine. Belief that the business which is at the bottom of the harmful
Effects, should be forced to damage compensation (that was the most detailed
By image it is discussed in section VIII in connection with the link of Pigu to locomotive sparks),
Undoubtedly, grows out of refusal of comparison of all product, which
Can be received at alternative social establishments.
The same error it is found in the assumption that a problem of harmful consequences it is necessary
To solve with use of taxes or encouragements. It obviously does an emphasis on it
The decision, though as usually, its statements are insufficiently detailed and
Are accompanied by reservations London: Macmillan AND Co., 381; see also: Pigou Ampere-second., Ibid., A
Study in Public Finance, p. 94 - 100, p. 192 - 194, 1947.
Modern economists are inclined to think exclusively in terms of taxes and at
It it is very concrete. The tax should be equal to a put damage, so,
Should depend on size of harmful consequences. As nobody speaks,
That receipts from taxes should go that who suffers from a damage, it absolutely
Not the same decision which assumes business compulsion to compensation
Damage that who has suffered from a damage, though economists as a whole, apparently,
Simply have not noticed it and are inclined to consider these two decisions as
Let's assume that in area where before there were no smoke sources, has appeared
The factory, causing a smoke a damage on 100 dollars a year. We will assume that is accepted
The tax decision also that the owner of factory pays annually on 100 dollars to those
Time while its factory smokes. We will assume further that is certain eliminating a smoke
The device, annual costs on which are equal 90 dollars In these conditions the such
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