The negative externalities here is that this taxation would harm the growth of achievement companies and this would have an effect on economic growthIn to drive blank space the point , the French government is devising a rule of tax on disposables and subsidies on energy effective products that would get at the people to be forced to concede to this plan until now , this system of taxation and subsidy bears its own consequence likewise . In the case of disposables , two things can happen . The frontmost thing is that if the tax is applicable to the producers , the price of the disposable products bequeath escalate . On the other hand , if the tax is on the consumers , the supply would be the same and but have for the products would be reduced . Overall , there would be reduction in supply in a lower proportion . unless , in the case where subsidies are given on fuel-efficient cars , demand for these cars would be higher . Considering the deadweight losses , the externalities can not be reduced...If you want to get a full essay, order it on our website: Orderessay
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