Well if it affects one plot of land that is currently the property of just 1 person it can still be an externality because lots of different people will own this land in the future.
It could be an externality, if the land was randomly reassigned a new owner every year or something. But if the land is sold, that is taken into account. It isn’t an externality. Capitalism has priced this effect in.
Well if it affects one plot of land that is currently the property of just 1 person it can still be an externality because lots of different people will own this land in the future.
It could be an externality, if the land was randomly reassigned a new owner every year or something. But if the land is sold, that is taken into account. It isn’t an externality. Capitalism has priced this effect in.