Most Externalities are Solved with Technology, Not Coordination

The basic externalities story goes like this: Some things, like air quality or scientific discoveries, have effects which spread to millions of people without cost or reward to the creator. Actions with unpunished costs are over-produced and actions with uncompensated benefits are left undone.The story continues that if only we could coordinate, we could fix the misallocation caused by externalities. We might get the government to tax and subsidize externalities or else we might try to lower tra...