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The Real Question Is, Where Should We Draw That Line?
The closer you get to the unit of decision making, the more connected the decision is to the benefit. A city deciding basically gets all the negative externalities and it were a local municipal council deciding on a street would experience very little of the positive benefits. So my argument is just that we we have to find a point in between a single house and a local municipality that is better balanced between the negative Externalities and the positive gains.