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How to Get Rich: Every Episode

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Pricing Externality Can Save the Environment

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Externalityis when there is an additional cost that is imposed by whatever product is being produced or consumed. Sometimes youan fix that by putting the price back into the product. Properly pricing externality can save resources in a tremendous way. It's much better than field good measures, where we're just going to band plastic bags and say don't take showers on saturdays and sundays during drought.

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