A private company runs a coal mine that employs 400 workers. Its mining activities have polluted the environment and generated external costs. If the government steps in, how might it internalise the externality?
- Aclose part of the mine and import the coal
- Blevy an additional tax on the miners’ wages equal to the external cost
- Cpay for the external costs of restoring the environment after mining
- Dplace a tax equivalent to the external cost on the output the company produces