A solution for external costs beyond negotiation and taxation

TL;DR

This paper critiques traditional economic solutions to externalities, proposing a new conceptual approach involving diffuse agents that reduce entropy and external costs beyond negotiation and taxation.

Contribution

It introduces a novel theoretical framework that complements conventional economic methods by involving diffuse agents to mitigate external costs.

Findings

Proposes a new conceptual model involving diffuse agents.

Highlights limitations of Coase and Pigou approaches.

Suggests a mechanism for entropy reduction in markets.

Abstract

This article aims to launch light on the limitations of the Coase and Pigou approach in the solution of externalities. After contextualizing the need for integration of ecological and economic approaches, we are introducing a new conceptual proposal complementary to conventional economic approaches. Whose process is guaranteed by a set of diffuse agents in the economy that partially reverses entropy formation and marginal external costs generated by also diffuse agents? The approach differs in six fundamentals from traditional theory and proposes a new way of examining the actions of agents capable of reducing entropy and containing part of external costs in the market economy.