Why free markets fail to account for negative externalities

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Free markets won't function optimally and will do great harm if costs of negative externalities aren't reflected in the price of products produced, but it's difficult to figure out those costs and create mechanisms that force producers to pay for them. https://lnkd.in/gRDhY3i

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Currently, climate disaster costs are estimated by insurers, businesses, governments and builders through higher insurance rates and rebuilding costs.

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