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307:. A negative externality occurs when the consumption of a good has measurable negative consequences on others who do not consume the good themselves. Pollution (due, for example, to automobile use) is the canonical example of a negative externality. By contrast, a demerit good is considered as undesirable because its consumption has negative effects upon the consumer.
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purchases heroin, they must have done so because heroin makes them better somehow, and this transaction is considered therefore as a net social positive (assuming that the addict does not commit any other crimes as the result of their addiction). Paternalism judges that heroin "isn't good for you",
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perception of the utility of a good as the final judgement of the utility of the good for that person, and thereby disallows the concept of a 'demerit good' (while allowing the analysis of negative externalities). As an extreme example, if a
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whose consumption is considered unhealthy, degrading, or otherwise socially undesirable due to the perceived negative effects on the consumers themselves"; it could be over-consumed if left to market forces of
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have both properties: they are a demerit good because they damage the smoker's own health and also produce the negative externality of damage to others by
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385:"Demerit Good Law & Legal Definition"
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283:. Because of the nature of these goods,
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263:. Examples of demerit goods include
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433:"Demerit good definition"
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490:. John Wiley and Sons.
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415:. Retrieved
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639:Final goods
389:USLegal.com
365:Tobacco tax
328:paternalism
287:often levy
285:governments
837:Categories
760:Used goods
644:Free goods
591:Club goods
417:2016-11-17
371:References
309:Cigarettes
186:improve it
110:newspapers
39:improve it
568:Types of
324:welfarism
293:sin taxes
281:junk food
244:economics
190:verifying
45:talk page
355:Soda tax
344:See also
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299:Concept
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184:Please
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