Track and charge negative externalities through blockchain
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from Negative externalities
Negative externalities refer to the situation where the decision-making (actions/economic activities) of one economic entity affects the decision-making of another economic entity. For example, "environmental pollution progresses as a result of one-sided economic activities." This is one of the examples of negative externalities.
Through blockchain, it may be possible to sell emission rights, as argued in Blockchain vs. Inefficient Government.
Imagine one of the "flexibility measures" of the Kyoto Mechanism, "Carbon Emission Trading," which complements greenhouse gas reduction.
Carbon pricing
What is the appropriate level of pollution in the air for carbon emission trading?
Environmental protectors can purchase Clean Air Credits, and if environmental polluters cause "negative externalities" to shared resources, they can be made to pay for it.
Are you familiar with the "Tragedy of the Commons"?
Imagine a scene where cows and pastures are completely recorded by blockchain contracts and prices are set.